As the world’s second-largest diamond supplier, Botswana has established itself over several decades as a unique example of African economic success.
By managing its natural resources responsibly and ethically – through a strategic partnership with De Beers in particular – the country has been able to transform this wealth into a lever for national development. Now facing an unfavorable global economic climate, it is rolling out a new strategy to promote its production locally.
A pivotal agreement with De Beers
The world’s second-largest supplier of diamonds, accounting for 15% of total production, Botswana owes its remarkable economic rise to the responsible exploitation of its diamond deposits. These deposits contribute 30% of its revenue and 75% of its foreign exchange earnings, providing a real lever for its domestic development. In early 2025, it renewed an agreement with the De Beers group, a key partner in the local diamond economy, to share the exploitation of the country’s mines. Botswana has described this new agreement as “historic.” It stipulates that in the medium term (10 years) the two partners will share the proceeds from diamond mining equally. Described as “revolutionary” by De Beers CEO Al Cook, this decision confirms the mining group’s major commitment to Botswana.
Beyond this mining agreement, De Beers is committed to supporting economic development projects (approximately $75 million), health and education projects, and projects promoting diversification and employment, as well as initiatives focused on environmental, wildlife (protection of endangered species) and flora protection, such as the Okavango Eternal projects that Rubel & Ménasché presented in a previous Lettre. In terms of local development, De Beers will invest in a diamond cutting facility and a vocational training institute for diamonds, and plans to create a certification laboratory.
An ambitious project unveiled at the JCK Las Vegas trade show
At the JCK Las Vegas trade show in early June, Botswana presented House of Botswana, a space that showcased the country’s riches – not only its world-renowned diamonds but also its appeal as a high-quality tourist destination and its investment opportunities in other sectors. President Duma Boko used the occasion to unveil an ambitious long-term project: all diamonds from Botswana’s mines will remain in the country to be cut and polished, an announcement that signals a major policy change. As quoted in The Projects Magazine, the President of Botswana said, “We are moving to a point where no mineral will leave this country without being processed.” Bogolo Joy Kenewendo, Botswana’s Minister of Minerals, who also attended the JCK show, noted that between 2022 and 2024, diamond production in her country had fallen by 64%.The country must seek other outlets, other sources of wealth to complement that of rough diamond sales. “We want to ensure that more of our partners come here, that when we say Botswana is the center of the diamond world, it truly becomes the center of the diamond world. There is beneficiation, there’s cutting, polishing, there’s jewelry, there’s trading, not only of diamonds, but of other gems, which is what he (President Duma Boko – Editor’s note) just announced [at the WFDB meeting in New York] – that we are working towards a Botswana Mercantile Exchange to ensure that we are getting as much value out of our minerals, not only in Botswana but even in the region, as we can.”
Adapting to a deep structural crisis
Botswana has been hit hard by the diamond market crisis, which has forced it to halt production at the Jwaneng Cut-9 and Orapa mines and reduce production at Debswana (the joint venture between De Beers and the Botswana government) by 27% to 17.93 million carats in 2024. Debswana, which accounts for around 90% of Botswana’s diamond sales, has seen a 46% drop in revenue. Despite these considerable losses to its economy, the country continues to set the standard for good governance and redistributive management in the diamond sector, as shown in the Natural Diamond Council report. Often held up as a model of responsible development, the country – now aware of its economic weaknesses – is seeking to develop other avenues. The local processing of rough diamonds is an innovative project with the potential to become a growth driver. “If Dubai (the DMCC) is able to trade minerals they don’t have, then we why shouldn’t we be able to do the same?” argues Minister Bogolo Joy Kenewendo. Botswana did not wait for market turmoil to take new initiatives. It recently created Botswanamark™, a label applied to jewelry featuring diamonds sourced from its mines in Jwaneng, Orapa, and Letlhakane. The origin of the stones is certified and customers can trace the diamond’s journey from its rough state. Sourcing, traceability and ethics are key terms in Botswana’s strategy. Supported by De Beers and Tracr, and already enjoying an excellent reputation, Botswana intends to capitalize on the new trend of marketing origin. In his speech in Las Vegas, President Duma Boko emphasized his ambition to place his country at the heart of “ethical luxury” that would no longer be defined by “what we wear but what it represents.”
A report by Plumb Club seems to back him up, observing that customers are willing to pay more for jewelry whose traceability is transparently established. This trend is growing, particularly among the younger generation, and is the focus of all strategies in the diamond industry. To be continued.
It will undoubtedly take time for Botswana to implement the announced projects, but the country is now positioning itself as a global player in the diamond industry, looking to the future and economic diversification.
Image : Botswana President Duma Boko and Minister of Minerals and Energy Bogolo Joy Kenewendo inaugurate the House of Botswana at the JCK Show ©BWgovernment