Botswana Bets That Diamonds Are Forever

Botswana Bets That ‘Diamonds Are Forever’ BOTSWANA Botswana In a village outside Botswana’s capital, Gaborone, Keorapetse Koko sat on an aging couch, facing the collapse of a career built on diamonds. “I have debts and I don’t know how I am going to pay them,” the mother of two told the Associated Press. “Every month (creditors) call me asking for money. But where do I get it?” Koko lost her job in 2024, becoming one of many diamond workers pushed out of the industry as inexpensive laboratory-grown stones made in China and India cut into Africa’s natural diamond trade. “The appeal of diamonds was always partly based on scarcity – and now they are no longer scarce,” mining historian Duncan Money told the Continent, an African weekly. For Botswana, the question is no longer whether diamonds are forever, but whether the country can afford to bet even more heavily on them. The government is currently trying to buy more control over De Beers, the diamond giant at the center of its economy. Botswana already owns 15 percent of the company, while Anglo American, the firm’s parent, owns the remaining 85 percent and wants to sell. A mid-April deadline for potential buyers to bid for Anglo American’s stake passed without a buyer being publicly named. Anglo said in its April 28 quarterly statement that the sale is still ongoing. “Buying De Beers is a risky undertaking – we do not have the money to buy De Beers,” Keith Jefferis, a former deputy governor of the Bank of Botswana, told business news publication the Executive. “We would have to borrow and repay that debt, and that is highly risky given diamond market performance and our current fiscal position.” Jefferis, managing director of Econsult Botswana, also warned that if De Beers struggled, Botswana might have to use tax revenue to prop it up, further straining public finances. The risks are already visible. Mining and Quarrying – official categories in the country – dropped 14 percent last year, while Diamond Traders, which refers to the buying, sorting, valuing, marketing and selling of diamonds, fell 17.6 percent. Botswana ended 2025 with 12 million carats of unsold rough diamonds in stock, nearly double the target of 6.5 million carats. It is easy to see why Anglo American wants to shed De Beers. But Botswana wants more of it because diamonds remain too important to leave to someone else. Botswana’s President Duma Boko says the larger stake is a strategic necessity. Mines Minister Bogolo Kenewendo told the Financial Times that Boko wanted “to ensure Botswana’s full control over this strategic national asset and the entire value chain including marketing.” The urgency is also political. Boko is under growing pressure less than two years after winning office in November 2024 on promises to raise the minimum wage and increase student allowances. But the diamond slump has hit state revenues and public services, while the economy shrank in 2024 and 2025. The stones account for about 80 percent of exports and roughly a quarter of GDP. When the market weakens, the whole country feels it. Diamonds turned Botswana from one of the world’s poorest countries into one of Africa’s most admired development stories, helping fund health care, education and infrastructure. Botswana is currently the world’s second-largest producer behind Russia, but that ranking offers less comfort than it once did. Boko has acknowledged that Botswana cannot keep relying so heavily on diamonds. “We’re looking to diversify…,” he told Reuters, explaining the government would focus on the green economy, climate-smart agriculture, renewable energy and a broader mining sector. Analysts said that the shift remained essential and that gaining more control of De Beers could not be a substitute for it. “The diamond strategy must therefore interact with, and not compete with, other national priorities,” wrote investment firm AInvest. “This includes infrastructure investment and the development of other sectors to build a more resilient economy.” For Joseph Tsimako, president of the Botswana Mine Workers Union, the stakes are counted in livelihoods, not strategy papers. “Diamonds built our country,” Tsimako told diamond trading platform IDEX Online. “Now, as the world changes, we must find a way to make sure they don’t destroy the lives of the people who helped build it.”

South Africa's Top Court Revives Impeachment Case Against The President

South Africa’s Top Court Revives Impeachment Case Against President SOUTH AFRICA South Africa South Africa’s Constitutional Court revived the impeachment process against President Cyril Ramaphosa on Friday, ruling that parliament acted unconstitutionally when it blocked an inquiry in 2022. The case centers on a decision by the ruling African National Congress (ANC) to reject an impeachment inquiry after Ramaphosa became embroiled in an investigation into the theft of around $580,000 in cash hidden inside a sofa at his farmhouse in 2020. The scandal, dubbed “Farmgate,” triggered accusations that Ramaphosa failed to properly account for the source of the money. An independent panel later found preliminary evidence that the president may have committed serious misconduct and recommended that parliament open an impeachment inquiry. But the ANC used its parliamentary majority at the time to stop the proceedings. On Friday, South Africa’s top court ruled that parliament’s decision “is inconsistent with the Constitution, invalid, and … is set aside.” Judges ordered that the independent panel’s report be referred to an impeachment committee. The case was brought before the court by two opposition parties, the Economic Freedom Fighters and the African Transformation Movement, which have renewed calls for Ramaphosa to resign. Ramaphosa has repeatedly denied wrongdoing. He said the money came from the sale of buffalo at his farm and rejected allegations that he tried to conceal the theft to avoid questions over why such a large amount of foreign currency was being stored on a private property instead of in a bank. The impeachment committee will now review the evidence and decide whether to recommend formal proceedings against the president. Political analysts, however, said the process could take months and suggested Ramaphosa is likely to survive any eventual impeachment vote. Removing the president through impeachment requires the support of two-thirds of parliament.

Zimbabwe To Return Seized Farms

Zimbabwe to Return Seized Farms and Pay Compensation to Foreign Landowners ZIMBABWE Zimbabwe Zimbabwe said this week it will return 67 foreign-owned farms and pay $146 million in compensation to landowners whose properties were seized during its land reform program more than two decades ago. Agriculture Minister Anxious Masuka told lawmakers that the agreement settles claims involving property owners from Denmark, Germany, the Netherlands, Switzerland and the former Yugoslavia. He added that the government would also return 840 affected farms owned by Black farmers and around 400 owned by white farmers. The move stems from Zimbabwe’s violent land redistribution campaign launched in 2000 under then-President Robert Mugabe. Seeking to strengthen political support, Mugabe encouraged Black subsistence farmers and youths to seize land from white commercial farmers, describing the policy as a correction of colonial-era injustices. The seizures turned violent, with several white farmers and hundreds of their workers killed, while around 4,000 commercial farmers were forced off their land. The land reform program triggered international sanctions against Zimbabwe and severely damaged investor confidence. It also contributed to the collapse of the country’s commercial agriculture sector, sharp declines in food production and years of hyperinflation. In 2020, President Emmerson Mnangagwa’s administration agreed to pay $3.5 billion in compensation to white farmers in an attempt to restore relations with international creditors and regain access to global capital markets. But authorities later revised the compensation plan to include dollar-denominated bonds as part of the payout package, though many farmers rejected the new terms.

Zimbabwe's Gold Boom Masks A Tarnished Core

Zimbabwe’s Gold Boom Masks a Tarnished Core ZIMBABWE Zimbabwe Just a few years ago, economists labeled Zimbabwe’s economy a “basket case.” Now, they say it’s booming as it rides the waves of a gold rush. That’s quite a turnaround for a country that not so long ago grappled with hyperinflation so extreme that most locals needed wheelbarrows of cash to buy groceries. What’s fueled the boom has been the rising price of gold and other commodities. That, in turn, has been pouring cash into Zimbabwe’s informal economy, with some trickling down to the hundreds of thousands who work in small-scale mining, observers say. “These youngsters are loaded,” one retailer in Mazowe, a gold-mining area north of the capital of Harare, told the Economist, describing a surge in spending on electronics and motorcycles. Higher prices for other resources such as chrome, lithium and platinum are also boosting export earnings, bringing in more foreign currency, reducing the need to print money or once again replace the Zimbabwe dollar, and helping stabilize inflation. This has fueled economic growth, leading to one of the highest expansion rates in Africa. The economy is booming, says President Emmerson Mnangagwa. Still, the boom hasn’t been even or widespread. Zimbabweans say there is a massive and widening gap between official claims of growing prosperity and the everyday reality, with gains concentrated in pockets of the informal economy. Meanwhile, more than half of the population lives below the poverty line. “To millions of suffering Zimbabweans trapped in deep poverty, hunger, unemployment, hyperinflation and hospitals (lacking drugs), to suggest that a lot has improved in the last five years is a gross insult,” said former Zimbabwean finance minister Tendai Biti. “This economy is… weighed down by massive corruption, incompetence and indifference. It is slowly heading for an implosion.” Moreover, almost half of the country is worried about corruption siphoning off the benefits of the economic boom. Zimbabwe is one of the most corrupt countries in the world, with the president and his circle heavily involved, according to the US government, which placed sanctions on the president and other officials. “Mnangagwa is involved in corrupt activities, in particular those relating to gold and diamond smuggling networks,” the US Treasury Department said. “Mnangagwa provides a protective shield to smugglers to operate in Zimbabwe and has directed Zimbabwean officials to facilitate the sale of gold and diamonds in illicit markets, taking bribes in exchange for his services.” The current situation in the country has dashed the hopes that Zimbabweans had for the transformation of their country after long-time dictator Robert Mugabe was ousted in 2017 after 37 years. Mnangagwa, who took office soon after, promised economic revival and democratic reforms. Instead, Zimbabweans got more of the same, wrote the Bertelsmann Stiftung. “The past seven years have been marked by increasing repression, a lack of reform, severe corruption and a deteriorating economic crisis,” it said. “The systematic and widespread attacks on the opposition and civil society have severely narrowed democratic space.” Mnangagwa’s administration has cracked down severely on members of the opposition and activists, and has turned increasingly authoritarian, civil rights groups say. His government has operated a system similar to Mugabe’s, though analysts say it has evolved, with informal cash flows and resource booms reshaping who benefits. “In recent years, the rise of the ‘mbinga’ (wealthy hustler) phenomenon and the president’s call to ‘make money’ have to be understood in this matrix of clientelism and patronage,” said the Institute for Security Studies. “Simply put, ‘Work with us, and limitless money-making opportunities abound’.” The situation is leading to a power grab. Recently, the government proposed constitutional changes to lengthen presidential terms from five to seven years, which means Mnangagwa, 83, would stay in power past 2028 – possibly for life. Another change would eliminate the direct election of the president, who would then be chosen by parliament. That has some voters outraged. Ishmael Phololo, a cellphone technician who runs a workshop in Harare, said lawmakers cannot be trusted to choose the president. “A (lawmaker) cannot relate to the people’s woes because the moment they get in parliament, they get cars and allowances,” he told Al Jazeera. “If they want to have indefinite terms, they should just declare Zimbabwe a monarchy and stop pretending that we have democracy.”

South African Banking Giant To Quit England

South African banking giant set to quit UK after R17 billion hit One of SA’s most valuable banks is exiting the United Kingdom following a ‘disproportionate’ motor finance hit. By SAPeople Staff Writer 08-04-26 09:43 in Business and Finance Stock image of a transaction showing a bank card, point of sale device and two people's hands. This image accompanies an article about FirstRand pulling out Aldermore and UK 0 Image: Energepic via Pexels One of South Africa’s most valuable banks, FirstRand, has announced its planned exit from the United Kingdom following a crippling UK motor finance hit. The financial services giant will divest from its British challenger bank, Aldermore, after new regulations rendered its consumer finance operations financially unviable. As reported, FirstRand has been forced to increase its provisions for mis-sold motor loans by £510 million (R11.9 billion) to a staggering £750 million (R17.7 billion). The group, which owns FNB, RMB and WesBank, stated that this massive financial blow heavily outweighs the £275 million in profit its motor finance division has generated over the past decade. The FCA’s redress scheme The controversy centres on MotoNovo, a vehicle finance company operating under the Aldermore Group umbrella. In October 2024, the UK Court of Appeal ruled that several lenders had unlawfully arranged motor finance deals without adequately disclosing the commissions paid to car dealerships. Following further legal battles, the UK’s Financial Conduct Authority (FCA) introduced a redress scheme to compensate motorists, expecting the industry to pay out around £9.1 billion. FirstRand – a top 10 South African employer in 2024 – has heavily criticised the FCA’s approach, labelling the final redress scheme as “disproportionate and unfair”. The group argued that the compensation model includes more customer contracts than initially anticipated and utilises a calculation method that is both unsubstantiated and ignores lender costs. Aldermore divestment and future outlook Founded in 2009 and acquired by FirstRand in 2018 for £1.1 billion, Aldermore operates as a digital-only specialist bank serving small to medium-sized businesses and personal customers. While FirstRand maintains that Aldermore is a sustainable business, the stringent requirements of the FCA scheme mean MotoNovo would require significant recapitalisation, severely constraining the capital available to fund further UK growth. Consequently, the banking giant concluded that operating a UK consumer finance entity no longer aligns with its risk appetite or required financial returns. FirstRand is currently working alongside the Aldermore board and regulators to facilitate an orderly transition of ownership. Due to the massive accounting provision, the group expects its full-year earnings to contract by between 10% and 15%. 0 comments

Nigerian Air Strike Targeting Militants Backfires-100 Civilians Killed

Nigerian Air Strike Targeting Militants Misfires, Killing More than 100 Civilians NIGERIA Nigeria A Nigerian military strike targeting militants hit a northeast marketplace over the weekend, killing more than 100 civilians and injuring numerous others, prompting authorities to open an investigation as such errors have become a grim, recurring pattern. The Nigerian Air Force said in a statement that it had dispatched a team “to immediately proceed to the location on a fact-finding mission on the allegation,” as officials continued to assess the aftermath of the strike. While authorities acknowledged that an error had occurred, they did not release further details or confirm a final death toll. However, human rights watchdog Amnesty International said survivors had told them that at least 100 people were killed in the airstrike, including many children. The strike hit Jilli market near the border of Borno and Yobe states, where military aircraft had been targeting Islamist militants. The area is the epicenter of a jihadist insurgency that has plagued the region for more than a decade. Local authorities in Yobe said the operation had been aimed at a stronghold of the Boko Haram militant group. A civilian security volunteer working with the Nigerian military in the northeast said intelligence showed the group’s militants were gathered near the market and were planning to strike surrounding communities. Air raids are a common tactic in Nigeria’s fight against armed groups operating from forested areas, but they have repeatedly resulted in civilian deaths. An Associated Press tally found that at least 500 civilians have been killed in such incidents since 2017. Analysts attribute the repeated errors to gaps in intelligence and weak coordination between ground forces, air units and other stakeholders. Nigeria, Africa’s most populous nation, has been grappling for years with Boko Haram and other militant groups as well as kidnapping-for-ransom gangs in the northeast.

Nigeria Prosecutes More Than 500 For Terrorism In Mass Trial

Nigeria Prosecutes More than 500 For Terrorism in Mass Trial NIGERIA Nigeria Nigeria began one of its largest terrorism trials this week, with more than 500 suspects facing prosecution over alleged involvement in militant attacks, as authorities seek to address escalating insecurity across the country. The mass trial opened Tuesday at a high court in the capital Abuja, where 227 suspects were arraigned before 10 judges. The defendants face a range of charges related to aiding and abetting terrorism, including participating in attacks and providing support to militant groups through funding, weapons and logistics. Some of those on trial are accused of links to Boko Haram, the Islamist group that has waged an insurgency in northeastern Nigeria for nearly two decades. The conflict has since spread to other regions of the country, with other jihadist groups appearing alongside armed groups and criminal gangs, which carry out kidnappings for ransom. On Tuesday, gunmen attacked villages in the Shiroro district of western Niger state, killing 20 people, according to residents. Across Nigeria, hundreds of people have been killed in bombings and other attacks this year alone. The hearings began under heavy security. Authorities welcomed the trial, describing it as a demonstration of the government’s commitment to tackling terrorism and restoring stability. Security analyst Bashir Galma called the trial a “positive development” and a “significant milestone” in the fight against terrorism, adding that it helps counter claims that suspects are routinely released without prosecution.