Debswana Scales Back Diamond Production Amid Global Market Slowdown—New Avenues for Diversification and Investment Emerge

Debswana Diamond Company, Botswana’s largest diamond producer and a joint venture with De Beers, has announced a temporary suspension of operations at several key mines in response to prolonged weak demand in the international diamond market. This strategic move follows a 27% cut in production in 2024 and a sharp 46% decline in sales revenues, with the company now targeting output of just 15 million carats for 2025.

With Botswana relying heavily on diamond exports for national revenue and foreign currency, the market downturn has had significant economic repercussions, contributing to a 3% contraction of the economy in 2024 and a further slowdown projected by the IMF for 2025. To manage costs, Debswana is pausing production at the Jwaneng Cut 9 and Orapa mines, following earlier suspensions at the Letlhakane and Jwaneng Modular plants, and slowing certain capital projects. Importantly, the company assures there will be no involuntary layoffs, instead offering voluntary separation packages while maintaining critical long-term investments like the Jwaneng underground project.

While the current challenges highlight the vulnerability of Botswana’s economy to fluctuations in the diamond sector, they also open doors for diversification and fresh investment. Opportunities now exist for businesses and investors to engage in alternative sectors such as tourism, renewable energy, agriculture, and manufacturing, as the government seeks to stabilise the economy and reduce reliance on a single commodity. Innovative financing, value addition in the diamond value chain, and public-private partnerships could play a pivotal role in shaping Botswana’s economic resilience for the future.

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