Online Reporter
Botswana is staging an unprecedented diamond auction as it seeks to shore up revenues hit by a prolonged downturn in the global gems market.
State-owned Okavango Diamond Co. (ODC) is offering about 1 million carats of rough stones in a one-off “closed” tender on Thursday, spokesperson Dennis Tlaang confirmed.
Unlike ODC’s regular auctions, planned well in advance for registered buyers, this sale was organised at short notice, Bloomberg reported.
According to people familiar with the matter, the ad-hoc auction is designed to raise quick cash for Botswana’s government, with two more tenders planned before the year’s end.
Struggling diamond sector
Diamonds remain the backbone of the southern African nation, making up about 80 percent of exports and a third of government revenue. But the industry is under strain. Debswana, Botswana’s largest producer, responsible for 90 percent of sales, saw revenues plunge by nearly 50 percent in 2024.
The slump has been fuelled by multiple pressures: synthetic gems driving down prices for lower-quality stones, oversupply in the market, waning Chinese demand, and inflation-battered consumers worldwide.
S&P Global Ratings expects Botswana’s economy to contract for a second straight year in 2025, while the government already faces a fiscal squeeze.
In March, Business Insider Africa reported that Botswana is seeking to lure wealthy young American buyers to its natural gems in a bid to offset the global slowdown.
Meanwhile, De Beers, central to Botswana’s fortunes for decades, is at the heart of political talks. President Duma Boko recently said his government is pushing to secure a controlling stake by next month, as Anglo American Plc prepares to divest its 85 percent holding. — Business Insider Africa
