Botswana's Debswana Cuts Diamond Output Amid Global Demand Slump

Botswana's diamond company Debswana, a joint venture between the government and De Beers, is significantly scaling back diamond production in response to a prolonged global downturn in demand. The company plans to reduce output by approximately 40% to 15 million carats in 2025, following a 27% cut in 2024, with temporary production halts at major mines like Jwaneng and Orapa. This reduction aims to generate cost savings amid challenges including sustained low demand and US-imposed tariffs, while avoiding involuntary job cuts and continuing key long-term projects such as the Jwaneng underground mine conversion. Botswana's economy, heavily reliant on diamond revenues for about 75% of its foreign exchange earnings, has already experienced contraction, with growth forecast near zero in 2025 due to the diamond market slump. Efforts to diversify the economy have had limited success, underscoring the risks of dependence on diamonds. These developments highlight ongoing market volatility and the importance for Botswana to find alternative economic paths.