2018 Reports

Botswana: Downstream linkages

Maennling, Nicolas Wolfram; Toledano, Perrine

The Government of Botswana managed to successfully negotiate a sophisticated downstream beneficiation agreement with its main partner, De Beers. The most important success factor was its exceptional bargaining power at the time of negotiation, which arose from a combination of three factors: 1) the loss in market power of De Beers, 2) the high reliance of De Beers on Botswana for its revenues and rough diamond supply, and 3) the need to negotiate the renewal of the licence.