Debswana Cuts Diamond Output to 15 Million Carats as Botswana Feels 27% Production Drop
Updated
Updated · Al Jazeera English · Jun 9
Debswana Cuts Diamond Output to 15 Million Carats as Botswana Feels 27% Production Drop
3 articles · Updated · Al Jazeera English · Jun 9
Summary
Debswana plans to cut diamond production to about 15 million carats in 2025 after slashing 2024 output 27% to 17.9 million carats, deepening layoffs and contract losses in Botswana’s mining towns.
Weak global demand, competition from lab-grown diamonds and softer luxury spending are driving the retrenchments at a company that accounts for about 90% of Botswana’s diamond sales.
Botswana’s economy is already showing the strain: second-quarter 2025 output contracted 5.3%, while diamonds still generate roughly 70% of export earnings and about one-third of government revenue.
S&P downgraded Botswana to BBB- in 2025, and unions say workers are increasingly pushed onto short-term contracts paying about $190-$250 a month as food and transport costs rise.
The government says it is trying to absorb job losses through copper, agriculture, tourism and ICT, but the downturn is exposing Botswana’s long-standing dependence on diamonds.
As lab-grown diamonds surge, is Botswana's 'diamonds are forever' economy facing an inevitable collapse?
How did a distant Middle East war help trigger mass layoffs for diamond miners in Botswana?
Botswana Faces Crisis as Debswana Diamond Sales Plunge 46% in 2024: Urgent Need for Economic Diversification
Overview
Debswana Diamond Company made major production cuts in 2024, likely continuing into 2025, as a direct response to severe market challenges in the global diamond industry. These drastic changes led to a 46% drop in Debswana’s sales revenues and forced widespread operational adjustments across its mining operations. The cuts were driven by reduced demand and falling prices, which quickly impacted Botswana’s export revenues, government income, and economic stability. This situation highlights how global market downturns and pricing pressures can rapidly affect both industry leaders and the national economy that depends on them.