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New diamond sales agreement in Botswana
On Tuesday, Botswana’s government signed a new diamond sales agreement with De Beers, a subsidiary of mining group Anglo American. The long-awaited agreement, which covers a period of ten years, includes an increase in the share of the state-owned Okavango Diamond Company (ODC) in the diamond sales of the Debswana Diamond Company – a 50:50 joint venture between ODC and De Beers. According to the agreement, ODC’s share of sales is to increase from the original 25% to 30% in the first five years and to 40% in the following five years. The agreement also includes an option to extend the agreement by a further five years, during which the share would rise to 50%. In return, De Beers will receive a 25-year extension of its mining licence in Botswana, which will then run from 2029 to 2054.
The new agreement also includes a comprehensive package of commitments to promote the diamond industry and the economic development of Botswana. This includes the establishment of the Diamonds for Development Fund, into which De Beers will pay around 75 million US dollars as an upfront investment. Further annual contributions are to follow from the dividends of Debswana, depending on the company’s performance. De Beers has also agreed to invest in a diamond jewellery production facility and the establishment of a De Beers Institute for Diamond Grading. Furthermore, a vocational training institute for diamonds is to be established in collaboration with other industry partners. Both parties are also committed to jointly investing in annually agreed marketing initiatives to boost demand for diamonds from Botswana.
The finalisation of the agreement, negotiations for which had already begun in 2018, was one of the priorities of Botswana’s President Duma Boko. Although an agreement was announced in 2023 under the previous government of Mokgweetsi Masisi, it was never officially signed. Following the electoral defeat of Masisi and his party, the Botswana Democratic Party (BDP), in the national elections at the end of October 2024 – the BDP had ruled the country since independence in 1966 – the new government resumed negotiations with De Beers. The agreement that has now been signed differs from the provisional agreement of 2023 in a number of respects. One important difference is the share of sales at the end of the ten years: this is now 40%, compared to 50% in the provisional agreement. In return, the new agreement contains an option for a five-year extension, during which the share would rise to 50%.
The deal with De Beers is seen in government circles and by local economists as an important step towards stabilising the global diamond market and the Botswana economy. The fact that it was concluded during a phase of difficult economic conditions and gives hope for a recovery of the market is particularly emphasised positively. At the same time, however, there are also challenges. The global diamond market slumped sharply last year, which can be attributed in part to the increasing popularity of synthetic diamonds, changes in consumer behaviour, and sanctions against Russian diamonds. Botswana, the world’s second-largest diamond producer after Russia, also felt the effects of this. According to Botswana’s central bank (Bank of Botswana), diamond sales fell to around USD 1.53 billion between January and September 2024 – a slump of almost 50% compared to the previous year, when sales totalled USD 3.19 billion. In addition, Botswana’s economy is heavily dependent on the diamond sector – according to the International Monetary Fund, the sector accounts for around 80% of export revenue and a quarter of gross domestic product.
New peace agreement between Senegal’s government and separatist group
On Sunday, the Senegalese Prime Minister, Ousmane Sonko, and the separatist group Mouvement des forces démocratiques de la Casamance (MFDC) signed a new peace agreement after three days of talks mediated by the President of Guinea-Bissau, Umaro Sissoco Embaló. The aim is to end a conflict over independence on the African continent that has lasted for decades but has often been forgotten: Since 1982, the MFDC has been fighting for the Casamance region in the south of Senegal to be recognised as a separate state. The conflict has claimed thousands of lives, displaced over 60,000 people and severely weakened the region’s economy.
Around 1.6 million people live in Casamance, which is almost completely separated from the rest of Senegal in the north by The Gambia. While the region is significantly more fertile than the arid north of Senegal due to the Gambia River, residents have been complaining for decades about the unfair distribution of national resources. The MFDC was originally founded as a peaceful resistance movement in response to marginalisation by the government, before turning into armed resistance. Guinea-Bissau has been an important player since the beginning of the conflict. While former Guinea-Bissau President João Bernardo Vieira supported the founding of the MFDC in the 1980s, current President Embaló mediated the last peace talks in 2022.
The current peace agreement builds on the decisions taken in 2022 to disarm the rebel movement and follow-up measures. In addition, amnesties for MFDC members and the social reintegration of the rebels were discussed. Subsequently, the MFDC is to submit a list of persons to be pardoned, which will be examined by the Senegalese government. In addition, a joint committee between the government and the MFDC was set up to deal with security measures as well as the disarmament and repatriation of internally displaced persons. The structured repatriation of internally displaced persons is to be based on the Plan Diomaye pour la paix en Casamance (PDC), which President Bassirou Diomaye Faye presented in his New Year’s address. As part of the PDC, funds are to be channelled to various programmes and organisations to support the development and economic revival of Casamance.
Senegalese Prime Minister Ousmane Sonko called the peace agreement a significant step towards sustainable peace and announced that investments in the region’s infrastructure, agriculture and job creation would follow. Guinea-Bissau’s president even called the agreement a model for the settlement of other conflicts on the African continent. Critical voices, however, doubt that the agreement will have the desired effect. Negotiations were only held with part of the divided MFDC; in particular, the important ‘northern front’ of the MFDC led by Salif Sadio, which continues to strive for Casamance’s independence, did not take part in the talks.
The implementation of the PDC and thus important parts of the peace agreement is also jeopardised by Senegal’s difficult financial situation. At the beginning of the week, the Court of Auditors published a report according to which the debt (99.67% of GDP) and the budget deficit (12.3% of GDP) are significantly higher than last stated by former President Macky Sall. The rating agency Moody’s, which regularly evaluates the creditworthiness of companies, states and financial instruments, downgraded Senegal’s rating to B3 on Monday. The agency therefore advises against long-term investments in the country. On the other hand, Senegalese economists praised the government’s openness regarding the results of the Court of Auditors and see reasons for further economic growth with a forecast economic growth of over 9% this year as well as new state revenues from the Sangomar oil field operated by the Australian oil company Woodside.
Breaking news: RSF militia establishes parallel government in Sudan
On Saturday evening, the militia Sudan’s Rapid Support Forces (RSF) and allied political and paramilitary groups signed a charter in Kenya’s capital Nairobi to establish a parallel government in Sudan. The establishment of the so-called Government for Peace and Unity follows the successful advance of the Sudanese Armed Forces (SAF) in recent weeks, which, among other things, managed to recapture key areas in and around Sudan’s capital, Khartoum (press review CW 7/2025). The aim of the new government is a secular, democratic and decentralised state as well as unhindered access to humanitarian aid, and an end to the civil war, according to a statement. The United Nations expressed concern about the proclamation of a parallel government and fears an even deeper rift. Meanwhile, Kenya’s President William Ruto, who had invited the RSF to talks, has also faced criticism. You can find further reporting on this topic in the Sudan section of our link collection.
In other news
On Tuesday, over 100,000 seeds from across Africa were deposited in the Svalbard Global Seed Vault by the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF). The vault, embedded in the permafrost of the Svalbard archipelago of Norway, serves as a global repository for seeds to ensure the preservation of plant diversity and food security in the event of a disaster, while strengthening the resilience of communities and landscapes to climate change. 13 of these new seed species come from indigenous African tree species that are crucial for nutrition, reforestation and climate adaptation across the continent – and often have particular cultural relevance. These include, for example, the African baobab tree, which is used for food, medicine and the manufacture of products. Éliane Ubalijoro, CEO of CIFOR-ICRAF, who personally delivered the seeds to the vault, emphasised that depositing the seeds is an important step in the commitment to preserving indigenous tree species that are essential for food security, livelihoods and healthy ecosystems.