Botswana’s largest diamond producer, Debswana, has suspended operations at several of its key mines due to a sharp and prolonged decline in global diamond demand. The company—a 50-50 joint venture between the government of Botswana and mining giant De Beers—announced it is scaling back production to 15 million carats in 2024, down nearly 40% from last year’s output.
This decision follows a nearly 50% drop in sales revenue in 2023, a significant blow to Botswana, which is the world’s top diamond producer by value. According to the International Monetary Fund, the diamond industry contributes around 25% of Botswana’s GDP and generates three-quarters of the country’s foreign exchange earnings. Debswana temporarily halted production at its flagship Jwaneng and Orapa mines in May, each expected to remain closed for up to three months. The company stated that the production cutback will help achieve “significant cost savings”, particularly in energy and fuel expenditures.
In its statement, Debswana cited not only weakened global demand but also growing competition from lab-grown diamonds and new U.S. import tariffs, which have added financial strain. Despite the downturn, the company affirmed that no compulsory layoffs are planned, although voluntary redundancies continue to be offered. The Botswana government, which relies heavily on diamond revenues, is now facing serious economic headwinds. A senior finance official told Reuters that the country may revise its 2025 growth forecast to near-zero, underlining the urgency of diversifying the economy beyond diamond dependency—a goal that has seen mixed progress over the years through efforts in tourism, finance, and copper mining.
