Botswana’s leading diamond producer, Debswana Diamond Company, plans to increase diamond production by about 20 percent this year as signs of recovery emerge in the global diamond market, offering a potential boost to the country’s economy after two years of contraction.
The company, a joint venture between the Government of Botswana and De Beers, expects output to rise to 18 million carats in 2026 from 15 million carats produced last year, when production was sharply reduced in response to weak global demand.
The planned increase was confirmed by a company spokesperson after comments by Thato Mokoti, deputy director for research and financial stability at the central bank, who said higher diamond production would be a key driver of economic growth this year.
“(The increase in production) is what would be driving the economy this year,” Mokoti told reporters.
Debswana produces roughly 90 percent of Botswana’s diamonds, making the sector critical to the southern African nation’s economy. Diamonds typically generate about one-third of government revenues and approximately three-quarters of foreign exchange earnings.
Botswana has been hit hard by a prolonged downturn in the global diamond industry that began in 2023. Demand for natural diamonds weakened amid economic uncertainty in major consumer markets and increasing competition from lab-grown stones, prompting producers to cut output.
Last year, Debswana reduced production by 16 percent, contributing to economic contractions in Botswana for a second consecutive year.
The government is now counting on a recovery in diamond demand to support an economic rebound. In February, Finance Minister Ndaba Gaolathe projected economic growth of 3.1 percent in 2026, largely dependent on improved performance in the diamond sector.
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Earlier this week, Minerals and Energy Minister Bogolo Joy Kenewendo said Botswana was witnessing a gradual improvement in demand from key markets, particularly the United States and China. She attributed part of the recovery to a global marketing campaign aimed at promoting natural diamonds.
While production is expected to increase this year, output remains below historical levels. Before the market downturn, Debswana typically produced around 24 million carats annually.
The company is also undertaking a restructuring programme to improve efficiency and profitability. Managing Director Andrew Motsumi said the miner aims to reduce annual operating costs by one-third to 6 billion pula (US$416 million) by 2028 as part of efforts to adapt to changing market conditions.
Industry analysts say a sustained recovery in diamond demand would be crucial not only for Debswana but also for Botswana’s broader economic outlook, given the country’s heavy dependence on diamond exports for revenue, foreign exchange earnings and employment.
However, uncertainty remains over the pace of the recovery, as consumer demand in major jewellery markets continues to face pressure from global economic headwinds and the growing popularity of synthetic diamonds.
