Botswana Cuts 2025 Diamond Production Amid Weak Global Demand
- luxevariemagazine
- Jun 10
- 1 min read
Botswana, the world’s largest producer of natural diamonds in Africa, has announced a 16% reduction in diamond output for 2025. This strategic decision reflects ongoing challenges in the global diamond market, including declining demand for natural stones.
Key Highlights
Output cut: The reduction targets a drop in production, primarily led by Debswana — the joint venture between Botswana’s government and De Beers, responsible for around 90% of national diamond sales.
Economic impact: Diamonds account for roughly 80% of Botswana’s export revenue. Given the sector’s downturn, national economic stability is at risk.
Revenue decline: Last year, Debswana suffered a 46% plunge in sales revenue and cut output by 27% — to 17.93 million carats.
Strategic pauses: The company is suspending operations at the Jwaneng Cut 9 and Orapa mines, in addition to halting work at its Letlhakane tailings and Jwaneng modular facilities.
Market pressures: The downturn has been compounded by growing consumer preference for cheaper lab-grown diamonds and trade barriers like U.S. tariffs.
Economic measures: Botswana is promoting domestic diamond processing—polishing and cutting locally—to bolster local employment and boost economic resilience.
Diversification urgency: Heavy reliance on diamonds—30% of government revenue and 75% of foreign exchange—makes Botswana vulnerable. The IMF projects the economy contracted 3% in 2024, with a further 0.4% decline anticipated this year.
Why This Matters
Botswana’s decision to trim diamond production underscores the need for flexibility in resource-dependent economies. The rise of synthetic diamonds, shifts in global demand, and external trade pressures have converged to challenge longstanding revenue streams. By scaling back production and enhancing local value capture through domestic processing, Botswana hopes to navigate volatility while preserving jobs—though long-term stability requires broader economic diversification.
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