Botswana is beginning to see a modest recovery in global diamond demand, particularly in key consumer markets such as the United States and China, Mines Minister Bogolo Joy Kenewendo said on Tuesday, offering cautious optimism for a sector that remains vital to the country’s economy.
Diamonds account for roughly one-third of Botswana’s national revenue, making the performance of the industry critical to government finances and economic growth. However, the sector has faced significant challenges in recent years as slowing global demand, economic uncertainty and competition from lab-grown diamonds weighed on sales and prices.
Kenewendo said early signs of recovery have emerged in major consumer markets, supported in part by international marketing efforts aimed at promoting natural diamonds. Despite the improvement, Botswana intends to maintain strict production discipline to help support the fragile recovery in the global gems market.
“We have pushed through what was inventory in Botswana and we are now focusing on managing our run-of-mine,” Kenewendo said, adding that supply discipline would remain an important strategy for stabilising market conditions.
The minister noted that balancing production levels with demand remains essential as the industry works to recover from one of its most prolonged downturns in recent years.
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The global diamond market has struggled since consumer spending weakened in several major economies and lab-grown diamonds gained popularity as a lower-cost alternative to natural stones. The shift has put pressure on prices and forced mining companies to adjust production plans.
In response to weak demand, Debswana Diamond Company, Botswana’s joint venture with De Beers, temporarily suspended production at some mining operations last year. Debswana accounts for approximately 90% of Botswana’s diamond sales, making its performance closely linked to the country’s economic fortunes.
Botswana has sought to manage inventories and align production more closely with market demand to avoid oversupply and further price declines.
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Attention is also focused on the future ownership of De Beers, one of the world’s largest diamond producers. Parent company Anglo American has placed De Beers up for sale as part of a broader restructuring programme amid declining diamond prices and changing market dynamics.
The sale has attracted interest from several parties, including Botswana, which already owns a 15% stake in De Beers, as well as governments and investors from other diamond-producing nations.
Kenewendo said discussions over the sale were in their “last stages,” although she declined to provide additional details because of confidentiality agreements surrounding the negotiations.
The minister’s comments come after Angola’s mines minister, Diamantino Pedro Azevedo, said his country was seeking a stake that would allow it to participate in strategic decision-making and that there was strong alignment between Angola and Botswana regarding the future of De Beers.
Last week, De Beers chief executive Al Cook indicated that a transaction could be completed within weeks and suggested that future ownership could take the form of a public-private partnership.
According to sources familiar with the process, the number of potential bidders has narrowed significantly from six groups in 2025 to two remaining consortia. The interested groups reportedly include governments from diamond-producing countries, former De Beers chief executive Gareth Penny, now chairman of investment manager Ninety One, a Qatari investment fund and Israeli businessman Nir Livnat.
For Botswana, a sustained recovery in diamond demand would provide a welcome boost to export earnings, government revenues and economic growth, while the outcome of the De Beers sale could help shape the future of one of the country’s most important industries.
