De Beers Pays First P1bn Into Botswana’s Diamond Development Fund

De Beers Pays First P1bn Into Botswana’s Diamond Development Fund

De Beers Group has paid its first P1 billion contribution to Botswana’s Diamonds for Development Fund, a new initiative designed to reduce the country’s dependence on diamonds and create fresh sources of economic growth.

The payment marks a major step towards implementing the fund’s plans to attract investment, develop new industries, create jobs and build a stronger, more diversified economy in the Southern African country.

The contribution followed the establishment of the fund’s governance structure, including the appointment of former African Development Bank president Akinwumi Adesina as chairperson and the selection and onboarding of a 10-member independent board.

The fund was established through a long-standing partnership between the Botswana government and De Beers Group to channel the value of the country’s diamond resources into other productive sectors of the economy.

Under the arrangement, the fund will support business development, encourage investment in emerging industries, expand employment opportunities and strengthen Botswana’s economic resilience over the long term.

As part of its initial activities, Adesina led the fund’s first in-country board meetings in Gaborone in September.

The meetings brought board members together with President Duma Boko, government officials, business leaders, financial institutions, academics, development partners and members of the diplomatic community.

The engagements provided an opportunity to explain the fund’s objectives and discuss how it could contribute to Botswana’s economic transformation.

De Beers’ initial P1 billion payment is expected to provide the financial foundation for the fund as it seeks to attract additional capital from domestic and international investors, including private-sector sources.

Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, described the initiative as an important tool for transforming the country’s economy.

She said the fund would help turn the wealth generated by diamonds into lasting economic benefits by supporting new industries, businesses and capabilities needed for the country’s next phase of development.

According to Kenewendo, the initiative is expected to create quality jobs, widen economic opportunities for citizens and establish a more diversified and resilient economy.

She added that Botswana intends to build on the success of its diamond industry while creating new avenues for growth and shared prosperity.

Adesina also welcomed the initial payment, describing it as a significant milestone that would allow the fund to move towards implementation.

He said its activities would focus on strategic areas capable of advancing economic diversification, industrialisation, export competitiveness and job creation.

De Beers Group chief executive officer Al Cook said Botswana’s economic progress since independence had been supported by the discovery and production of diamonds over several decades.

He reaffirmed the company’s commitment to investing in the future of Botswana’s diamond industry while supporting the government’s efforts to develop other sectors.

Cook said the Diamonds for Development Fund would provide a new platform for using diamond revenues to create sustainable economic opportunities beyond the mining industry.

He expressed confidence that the fund’s independent board and initial financial backing would help accelerate Botswana’s economic growth and provide an example of how natural resources can support long-term national development.