The auction, held outside the usual schedule, was intended to boost government revenue but highlighted ongoing challenges in the global diamond market.
ODC spokesperson Dennis Tlaang confirmed that no sales were concluded, emphasizing that the company would not compromise on prices that could negatively impact the market. The stalled sale comes amid a severe downturn for the diamond industry, driven by falling Chinese demand, competition from lab-grown stones, and U.S. trade uncertainties.
Diamonds are critical to Botswana’s economy, representing around 80% of export earnings and one-third of government revenue. The failed sale adds pressure to state finances, as the country faces its second consecutive year of economic contraction. Recent data from Statistics Botswana showed a 5.3% year-on-year decline in GDP for the second quarter of 2025, while diamond production fell 43%, the largest drop since the pandemic, due to mine maintenance and supply-demand adjustments.
Debswana, Botswana’s largest diamond producer and a 50-50 joint venture with De Beers, has scaled back output in response to weak global prices. ODC receives 30% of Debswana’s production.
Tlaang noted that postponing the sale reflects ODC’s commitment to maintaining fair market value for its diamonds and expressed confidence in renewed buyer interest at future auctions.
As the diamond sector navigates one of its toughest periods in decades, industry experts warn that a combination of market oversupply, geopolitical factors, and evolving consumer preferences may continue to challenge traditional mining hubs like Botswana.
