Botswana’s diamond industry showed tentative signs of recovery in 2025 after a difficult year marked by weak global demand, although the sector continues to operate under pressure from high inventories and subdued prices.
Rough diamond exports climbed to about P53.9 billion in 2025, up around 23% from P44 billion in 2024, reflecting improved trading volumes as producers worked through accumulated stock and gradually increased sales.
The country’s largest producer, Debswana, the 50/50 joint venture between the Botswana government and De Beers, produced about 15.1 million carats in 2025, down from 17.9 million carats the previous year as the company continued to manage output in response to weak market uptake.
Debswana’s two operating mines, Jwaneng and Orapa, produced 14.1 million carats by the end of November, while sales reached 18.1 million carats valued at about $1.78 billion (P24 billion), slightly higher than the $1.62 billion (P22 billion) realised in the prior year, indicating that producers relied partly on inventory sales to maintain revenues.
The company remains central to Botswana’s public finances, historically providing steady monthly inflows to government through dividends, taxes and royalties. But the recent downturn in the diamond market has slowed those flows, forcing government to rely more heavily on Southern African Customs Union (SACU) revenues and domestic borrowing to finance spending.
To sustain long-term production, Debswana is pushing ahead with the Jwaneng Underground Development Project, which aims to extend the life of the world’s richest diamond mine beyond the current Cut 9 pit. Development has advanced 5.3 km against a target of 4.9 km, putting the project about 9% ahead of schedule, with the mine expected to operate until around 2050. Meanwhile, the proposed Orapa Cut 3 expansion remains on hold pending a clearer outlook for diamond prices.
Beyond Debswana, the state-owned Okavango Diamond Company (ODC) sold $457 million (P6.2 billion) worth of rough diamonds in 2025, up from $425 million (P5.8 billion) the year before.
Botswana’s midstream cutting and polishing sector remained broadly stable but subdued. Diamond manufacturers were supplied with stones worth $571 million (P7.7 billion) in 2025, slightly lower than $580 million (P7.8 billion) in 2024, reflecting cautious purchasing by factories.
Exports of polished diamonds reached P7.6 billion up to November 2025, marginally down from P7.8 billion the previous year.
The country currently has 41 licensed diamond cutting and polishing firms, although several have closed operations in recent years as margins tightened. Employment in the sector stood at 2,544 workers as of January 2026.
The Ministry of Finance said the industry continues to grapple with elevated inventories, with Botswana’s diamond stockpile estimated at 12 million carats, nearly double the acceptable level of about 6.5 million carats, as producers limit supply to avoid pushing prices lower.