The new administration is committed to mending strained relationships, as demonstrated by Duma Boko’s meeting this week with leaders from De Beers and Anglo-American. He made it clear that any past issues between the two partners will be addressed collaboratively, with a focus on repairing and strengthening their bond.
“Where there are challenges, we will work together as partners to resolve them in the best way possible, engaging each other in good faith to ensure outcomes that benefit us all,” he added.
Boko’s words were a breath of fresh air to De Beers and Anglo-American, who had weathered a storm of criticism under the previous administration. The tension with De Beers, many believe, may have played a key role in the downfall of former President Mokgweetsi Masisi, whose confrontations with the company became a cornerstone of his political strategy. Now, with Boko at the helm, it seems a new chapter is being written—one where healing and collaboration take center stage.
With Botswana stepping into a new era under its fresh government, De Beers is looking ahead with renewed optimism. After a key meeting, CEO Al Cook shared his confidence with the media, revealing that the deal is set to be finalised in the coming weeks.
“We discussed the agreements, and both sides are very confident that we will reach alignment on those agreements very shortly,” Cook said adding that “we’ll move to a positive conclusion for the nation of Botswana and a positive conclusion for the shareholders of De Beers”.
“We are getting to the point of the technicalities in the agreements, dotting the i’s and crossing the t’s.” However, Cook was tight-lipped when asked about any potential changes to the existing agreement, which was forged under the previous administration. He cited the sensitivity of the matter, offering little in terms of specifics.
Upon taking office, Boko quickly set his sights on rebuilding trust with De Beers, fully aware of the fragile state of Botswana’s relationship with the company.
Public coffers are running on empty, with Botswana’s diamond-dependent economy now projected to experience negative growth.
Despite these challenges, Boko draws confidence from hearing De Beers’ commitment to “stand shoulder to shoulder in marketing and creating demand for natural diamonds.” However, the fundamental issues affecting Botswana’s economy stretch far beyond the reach of the diamond miner.
Boko seems dedicated to fostering agricultural growth in Botswana, all while steering clear of the trade tensions that characterised the previous government’s strategy.
In an interview with South Africa’s SABC shortly after his inauguration, Boko indicated his willingness to address the controversial vegetable import ban, a policy that has strained relations with South Africa.
Originally imposed in December 2021 under former President Mokgweetsi Masisi, the import ban aimed to boost local agricultural production and reduce Botswana’s reliance on imports. While the policy has benefited local farmers by reducing competition, it has also led to higher prices and occasional shortages, placing a burden on consumers.
South Africa, a key regional trading partner, has criticised the ban, citing its impact on economic integration and the financial strain on South African farmers who traditionally supplied the Botswana market.
“This issue is capable of causing problems if it hasn’t already,” Boko remarked, highlighting the economic and political pressure the ban has placed on both nations.
Boko outlined his administration’s focus on enhancing trade dynamics within the Southern African Customs Union (SACU). He expressed concerns over the lack of collaboration in implementing the ban and said that SACU includes provisions to protect emerging industries but also guidelines on how such protections should be managed. Boko suggested that Botswana’s policies to support emerging industries, like agriculture, could be better aligned with SACU’s framework.
“The question is whether Botswana, in imposing the import ban, has adhered to the terms of the SACU agreement. If not, then we need to return to what the agreement stipulates,” he stated.
Boko stressed the importance of cooperation to prevent unilateral decisions that disrupt trade. He indicated his intent to engage South Africa in discussions to find mutually beneficial solutions.
“If we act unilaterally, we create a problem; if they act unilaterally, they create a problem. So we need to come together to discuss, as detailed in the customs union,” he explained.
As trading partners, Boko said there is a need for greater collaboration and engagement between Botswana and South Africa. He signaled his intent to pursue diplomatic dialogue to balance local industry support with regional trade integration.
“Together with South Africa, we will determine our mutual interests and seek workable accommodations we can agree upon,” he said.
Boko expressed confidence in the capability of both countries to resolve the trade issue amicably. He highlighted that this proactive approach to economic issues would extend to other trade concerns involving Botswana and its trading partners.
“We are going to move swiftly to resolve these issues because we need to build and transform this economy,” he asserted.
While some view SACU as outdated, Boko disagrees, arguing that the union still generates revenue for member countries. However, he acknowledged that the agreement’s terms need to be more fully adhered to, and, if necessary, strengthened or renegotiated.
Patrick Molutsi, Head of Strategy and Policy for the UDC, has also been vocal in questioning the efficiency of the ban. Appearing on The Punchline Podcast with Lawrence Seretse, Molutsi raised concerns that the ban’s benefits have yet to reach the broader economy. He noted that prices for restricted vegetables, such as potatoes, have doubled since the ban took effect.
“The import bill is still high. Who is benefiting from this? Limited supply raises prices, and people are still importing vegetables illegally from South Africa,” Molutsi commented.
Molutsi suggested an alternative approach that would allow imports to stabilise prices while building local production capacity.
“We’re not discouraging farmers from producing; we’re saying scale up so local production meets market demand and prices come down. This balance will benefit both consumers and producers,” he said.
Economists have highlighted the negative economic impacts of the ban. In a recent economic review, Keith Jefferis from Econsult Botswana noted that the ban has driven inflation in essential goods. While the country’s overall inflation rate is relatively low at 1.5 percent, domestic food inflation, especially in vegetables, has surged. Jefferis pointed out that vegetable prices have risen sharply, contributing to a higher cost of living.
“Inflation is now driven mainly by domestic factors, with domestic tradeables inflation at 4.3 percent and rising. A key driver is vegetable price inflation, at 12.8 percent over the past year, reflecting the impact of the vegetable import ban,” Jefferis said.
In South Africa, Agriculture Minister John Steenhuisen, a critic of the ban, has expressed optimism about improved trade relations under Boko’s administration. South Africa exports nearly half of its agricultural produce, with 40 percent directed toward African markets. In 2013, this export value was approximately $13.2 billion, with the Southern African region, including Botswana and Namibia, accounting for a significant portion of these exports. For every dollar of agricultural products South Africa exports to Africa, 90 cents are within Southern Africa.
