The move signals a significant shift in the global diamond supply landscape and could impact the southern African nation's economic outlook.
The company, a joint venture between the Government of Botswana and mining giant De Beers, will reduce output to 15 million carats in 2025 — a sharp 40% drop from the previous year. The production cutback is aimed at reducing operational costs amid weak demand, geopolitical pressures, and increasing competition from lab-grown diamonds.
Flagship mines including Jwaneng and Orapa have already halted operations temporarily, with each expected to remain closed for three months. Debswana clarified that the closures are part of a strategic adjustment and that no involuntary layoffs are planned. However, a voluntary redundancy programme is being offered.
The downturn in diamond demand, particularly in major markets like the US and China, has been ongoing since 2023. Experts cite multiple factors — from economic uncertainty and inflationary pressure to the growing consumer preference for more affordable and sustainable alternatives like lab-grown diamonds.
Botswana, the world’s top diamond producer by value, has long relied on the gemstone trade to power its economy. Diamonds contribute roughly 25% of the country’s GDP and account for nearly 75% of its foreign exchange earnings. With Debswana responsible for about 90% of Botswana’s diamond output, the reduction could have serious ripple effects.
In light of the current situation, Botswana’s government is expected to revise its 2025 economic growth forecast downward. While the country has made efforts to diversify — investing in tourism, copper mining, and financial services — diamond revenues remain central to its fiscal stability.
The company says it will continue to monitor market conditions and adjust operations accordingly. As the industry reconfigures in response to evolving demand patterns, all eyes will be on how Botswana balances its economic dependency on diamonds with long-term resilience and growth.
