Jwaneng Mine: miningtechnology.com
Diamonds are Botswana’s best friends! Fuelled by diamonds, the country was the fastest growing economy in the world from 1970 to 2000 (Acemoglu, Johnson and Robinson 2001).
Botswana is the largest producer of gem-quality diamonds in the world, by value. Indeed, the glittering stones are a critically significant source of revenue in Botswana. It is also widely acknowledged that the country has escaped the so called “resource course”. The resource course is a paradox whereby a country is characterised by increased rent seeking behaviour in government to control the natural resource riches, such as the abundace of diamonds, which could contribute to corruption, civil conflict and war, as well as poor economic growth compared to resource-scarce countries.
Under visionary leadership of the founding fathers, Sir Seretse Khama and Sir Ketumile Masire, Botswana diamonds have contributed significantly to the development of key infrastructure in the country. Diamonds bought social amenities which include, among others, hospitals, decent roads, free health and education services, access to potable water, free plots for residence and farming purposes, as well as an extensinve welfare system.
It is worth noting that although the country’s diamonds are capital intensive the sector contributes employment opportunities in the various mines across the country, most importantly with services related to mining.
Although the country still suffers from widespread poverty and extreme inequality, it is fair to say, revenue from diamonds has had direct substantal impact in alleviating abject poverty.
It was fitting and timely inspirational to some of us, that in 2013 the De Beers global sorting, aggregation and sales operations moved from upmarket London, after 80 years, to dusty Gaborone, the capital of Botswana. The historic relocation meant that Botswana stones as well as those from Namibia and South Africa and as far as Canada are now traded in Gaborone. Therefore, a group of cosmopolitan diamantaires flock to the landlocked Southern African nation 10 times annually for the “sights”, the private rough diamond sightholder sales. Further, the relocation resulted in formation of a number of diamond polishing companies that resulted in employment opportunities for citizens as well as more spin-offs in areas of hospitality, banking and property development.
Following Jefferis (2009) towns such as Orapa, Jwaneng and Letlhakane owe their existence mainly to nearby diamond mining activities. In the image is the Jwaneng diamond mine, located in South Central Botswana. The mine is owned by Debswana, a 50:50 partnership between De Beers Company and the Government of the Republic of Botswana.
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Blessing Kgosi e tsile Kgasa 