President of Botswana, Mokgweetsi Masisi, has cautioned the country may cut ties with diamond firm De Beers should talks to renegotiate a sales deal be unfavourable to the government.

Botswana is the leading diamond producer in Africa, and the president has called on the country to support the government in attempts to reach a more beneficial deal.

A sales agreement reached in 2011 set out terms for the marketing of diamonds produced by Debswana – a 50/50 joint venture between De Beers and the government – and was set to come to an end in 2021.

Yet it was extended, as both parties said the impact of the pandemic was the reason for delays in concluding the negotiations, and it is in effect until the end of June this year, Barron's reports.

"If we don't achieve a win-win situation, each party will have to pack its bags and go," Masisi said during a rally of the Botswana Democratic Party (BDP) in Moshupa, about 65 kilometres from the capital Gaborone.

The president announced he was kicking off the campaign for the 2024 legislative election, going on to say that the country was facing a "Goliath" in regard to the negotiations.

Within the 2011 agreement, De Beers sold 90% of diamonds, whilst Botswana auctioned 10% via its Okavango Diamond Company. Back in 2020, Botswana's share rose to 25%.

Now "we got insight into how the diamond market works, and we discovered that we had been receiving less than what we should get," Masisi added.

"We also discovered that our diamonds are making a lot of profit and that the (2011) agreement had not been beneficial to us.

"We are upping the stakes because we want a larger share from our diamonds. It can't be business as usual," he cautioned.