DiamondBuzz
Botswana’s diamond problems are holding back its economy
Botswana depends too much on money from diamonds. This creates “bottlenecks” that stop businesses from growing and the country from trying new things, says the IMF (International Monetary Fund).
In a new report called Addressing Growth Bottlenecks in Botswana, the IMF says the country is at an important turning point.
The problems include:
- Hard to get loans (25% of companies say this).
- Issues with land ownership rules.
- Bad governance.
- Poor infrastructure, like unreliable electricity.
- Strict job rules that make hiring hard.
The diamond business is changing fast. Lab-grown diamonds, sanctions on Russia, and less demand from China (especially a normal business cycle drop) are hurting it.
The IMF says Botswana must fix these big problems to grow and not rely only on diamonds.
In 2024, the economy shrank by 3% because diamond production stopped and demand fell. This hurt government savings, raised youth joblessness, and showed too much focus on one industry.Last month, the IMF warned Botswana not to buy more shares in De Beers . It could increase debt and tie the country more to a risky business.
DiamondBuzz
Diamond Slump forces Debswana to diversify into copper, platinum and solar
Diamond-centric mining models is giving way to broader resource portfolios
Debswana Diamond Company, the 50–50 joint venture between the Botswana government and De Beers, is moving to diversify into copper, platinum and renewable energy as the prolonged downturn in natural diamond demand pressures earnings and forces the industry to rethink its growth strategy.
The company’s board has approved plans to invest in a portfolio of non-diamond projects after revenue fell 46% in 2024, the latest available financial year, highlighting the scale of the downturn in the global diamond market.
The move signals a strategic shift toward commodities with stronger long-term demand fundamentals, particularly copper, which is central to global electrification and energy-transition infrastructure.
Debswana’s diversification reflects a broader industry pivot as diamond producers confront weak consumer demand, rising competition from lab-grown stones and elevated inventories across the supply chain.
The shift is also visible among smaller exploration companies. Botswana Diamonds recently rebranded as Botswana Minerals, signalling its own strategic focus on copper exploration rather than diamonds.
Together, these moves underscore a growing consensus across the sector: the era of diamond-centric mining models is giving way to broader resource portfolios anchored in energy-transition metals.
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