Botswana is set to significantly reduce its diamond production in 2025 as the global market for natural stones continues to soften. Authorities say output will fall by around 16 percent compared with the previous year, reflecting mounting pressure on an industry that remains central to the country’s economy.
The downturn comes at a difficult time for Botswana, where diamonds account for the vast majority of export earnings and play a critical role in public finances.
Falling Demand and Industry Disruptions
Worldwide demand for diamonds has weakened as consumers increasingly turn to cheaper lab-grown alternatives and luxury spending slows in key markets. Mining companies have been forced to adjust operations, cut costs, and scale back output to cope with oversupply and falling prices.
These trends have had a direct impact on Botswana’s mining sector. Debswana, the country’s dominant diamond producer and the source of most national output, recorded a dramatic decline in revenue last year as sales dropped sharply.
Mine Closures Signal Deeper Challenges
In response to the market downturn, Debswana announced temporary production halts at several major sites, including its flagship Jwaneng mine and the expansive Orapa complex. These moves were aimed at limiting losses while demand remains subdued.
The slowdown has highlighted Botswana’s vulnerability to shifts in the global diamond trade, given its heavy reliance on a single commodity to sustain growth and employment.
Push for Local Value Addition and Diversification
To cushion the economic impact, Botswana’s leadership has renewed calls for more diamonds to be cut and polished domestically rather than exported in raw form. Officials argue that developing local processing could create jobs and retain more value within the country.
However, economists warn that value addition alone may not be enough. With diamond revenues under pressure, Botswana faces growing urgency to diversify its economy and develop alternative sources of income to restore stability and reduce exposure to global market swings.
