Botswana, Africa’s top diamond producer, has announced major output cuts for 2025 due to plunging global demand. With Debswana suspending operations at key mines, the government is pivoting to local processing to cushion economic fallout.
Botswana, Africa’s largest diamond producer, will reduce its 2025 diamond output in response to weak global demand and rising competition from lab-grown alternatives. The move is a significant blow to the country, where diamonds account for 80% of export revenue.
Debswana, the nation’s leading diamond company responsible for 90% of sales, saw revenues fall by nearly 50% in 2024. In response, it has suspended operations at its flagship Jwaneng and expansive Orapa mines.
“These are challenging times for the natural diamond market,” a Debswana official said.
In an effort to mitigate the economic shock, the Botswana government has introduced measures to boost domestic diamond processing, encouraging companies to cut and polish locally rather than export rough stones. Officials hope this strategy will add value, sustain jobs, and increase local earnings.
However, the downturn underscores the urgent need for economic diversification. Experts warn that Botswana must broaden its economic base to shield itself from future market shocks and ensure long-term stability.