Botswana’s new president, Duma Boko, is set to prioritize diamond negotiations as he takes office following a historic election victory. The Harvard-educated human rights lawyer led the opposition coalition, Umbrella for Democratic Change (UDC), to a surprise win over the Botswana Democratic Party (BDP), which had governed uninterrupted for 58 years. Outgoing president Mokgweetsi Masisi conceded defeat on November 1, ending BDP’s decades-long rule in the world’s second-largest diamond-producing nation.

One of Boko’s immediate challenges will be concluding a sales agreement with global diamond giant De Beers. The deal, which has been under negotiation for over a year, would gradually increase Botswana’s share of diamonds from the Debswana joint venture with De Beers to 50% over the next decade. This joint venture is critical for Botswana’s economy, as diamonds account for about 80% of the country’s export earnings. However, the global downturn has severely impacted Botswana’s diamond-based economy; sales by Debswana dropped by 52% in the first three quarters of 2024, as reported by the central bank on the eve of the election.

Botswana’s economy is grappling with significant challenges, including a 27% unemployment rate and an IMF-projected growth of just 1% this year, down from 5.5% in 2022. Diversifying beyond diamonds will be a key focus for Boko’s administration, as the country seeks economic stability in a sector that has been its primary revenue driver since the discovery of diamonds in 1966.

President Boko has stressed the need for a balanced and sustainable agreement with De Beers, emphasizing compromise and mutual understanding to ensure long-term stability. He has acknowledged that previous negotiations may have strained relations, noting that De Beers had considered stepping away from the deal. A spokesperson for De Beers, however, reaffirmed the company's commitment to working with the new government to achieve shared goals.

Industry analyst Paul Zimnisky highlighted that the political shift could help Anglo American, De Beers’ parent company, in its broader restructuring efforts, potentially leading to smoother negotiations. As diamonds remain central to Botswana’s economy, the new government’s handling of this partnership will be pivotal in shaping the nation’s financial landscape amid global market pressures.