DiamondBuzz
S&P downgrades Botswana sovereign rating amid prolonged weakness in global diamond demand
Diamond dependence and weak global demand strain fiscal outlook, even as strong institutions support investment-grade status
S&P Global Ratings has downgraded Botswana’s sovereign credit rating from BBB to BBB- with a negative outlook, signaling potential further downgrades if the fiscal environment does not stabilize. The world’s second biggest diamond producer had held steady with a BBB+ rating for at least five years, before it was downgraded to BBB last September. It has now been downgraded again, this time to BBB-.
Core Drivers of the Downgrade
- Diamond Dependency: The economy is heavily reliant on diamonds, which provide 70% of exports and one-third of government revenue.
- Market Volatility: A sharp decline in global demand—fueled by the rise of lab-grown diamonds, a slowdown in China, and reduced global luxury spending—has severely impacted national income.
- Fiscal Strain: The government deficit is projected to hit 8.9% of GDP for the 2026/2027 fiscal year, with net public debt expected to climb to 37.4% by 2029.
Economic Outlook
- Growth: After contractions in 2024 and 2025, a modest recovery of 2.5% is forecast for 2026.
- Reserves: Foreign exchange reserves have plummeted from $7.5 billion in 2017 to $3.8 billion at the end of 2025.
Institutional Strengths
Despite the downgrade, Botswana maintains an investment-grade status supported by:
- Strong democratic institutions.
- A history of prudent natural resource management.
- Relatively moderate debt levels compared to regional peers.
DiamondBuzz
Pandora Adds Carbon Footprint Labelling For LGDs
New Level Of Transparency Empowers Consumers To Compare Climate Impact Of Their Diamond Jewellery
For decades, diamonds have been graded by the traditional 4Cs: Cut, Colour, Clarity and Carat. Now Pandora is adding the 5th C, declaring the carbon footprint of every Pandora Lab-Grown Diamond as part of the product information on pandora.net alongside the traditional four grading criteria.
The carbon footprint covers all emissions from the diamond crafting process: from producing the raw materials used to grow the diamond all the way until it is cut and polished, ready to leave the diamond facility.
As an example, a one carat Pandora Lab-Grown Diamond has 12.58 kg of CO2e emissions. This is around 90% lower than a mined diamond of the same size.
By adding carbon footprint to the diamond conversation, Pandora gives customers an extra point of comparison and essential insight into the climate impact of their desired diamond jewellery.
CARBON FOOTPRINT COMPARABLE TO A PAIR OF JEANS
Lab-grown diamonds are chemically, optically, thermally and physically identical to mined diamonds.
Pandora stopped using mined diamonds in 2021 and is now only using lab-grown diamonds made with 100% renewable electricity and set in jewellery crafted from 100% recycled silver and gold.This significantly reduces the carbon footprint of the Pandora Lab-Grown Diamonds collection. For example, a 14k gold Pandora Infinite ring with a 1 carat lab-grown diamond has a comparable carbon footprint to a pair of jeans.
PANDORA TO SHARE FINDINGS
The carbon footprints of Pandora’s lab-grown diamonds have been calculated by external life-cycle assessment experts and published in a study verified by auditing firm EY. The study uses best practice methodology and is available on pandoragroup.com.
Adding a 5th C is a response to increasing consumer expectations to sustainability, and Pandora will share its methodology and findings with other jewellery makers to inspire greater transparency across the sector.
Pandora Lab-Grown Diamonds are currently available in the US, UK, Canada, Australia, New Zealand and Denmark with more countries to be added soon.
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