Botswana’s Okavango Diamond Company (ODC), the state‑owned entity responsible for marketing a significant portion of the country’s rough diamonds, is shifting a larger share of its sales toward contracted buyers to cope with a prolonged downturn in the global diamond market. Acting Managing Director Lipalese Makepe said the move is designed to bring more predictability to revenues compared with traditional auctions and tenders, which can be volatile and price‑sensitive.
Under a new marketing agreement with De Beers signed in February 2025, ODC is now allowed to sell rough diamonds directly to contracted customers, a departure from previous arrangements that limited this option. After pilot sales in late 2025 involving around 14 contracted buyers, that roster has expanded to about 32, and ODC plans to sell roughly 50% of its Debswana allocation by contract, with the remainder going through auctions, strategic partners, and Botswana‑based companies.
The shift comes amid global market pressures that have weighed heavily on Botswana’s diamond sector. A slump in demand, oversupply and competition from lab‑grown diamonds have driven down rough diamond prices in recent years, prompting producers to rethink traditional sales strategies.
The contract sales strategy also reflects broader efforts by Botswana to maintain stable revenue flows and protect the value of its diamonds. In previous years, ODC has at times withheld stones from auction rather than sell at prices that could depress the market, and the global downturn has seen rough diamond stockpiles swell to well above target levels.
Diamonds remain a cornerstone of Botswana’s economy, accounting for a large share of export earnings and government revenue, but the sector’s struggles have underscored the need for adaptation and diversification. In that context, the expansion of contract sales is part of a broader strategy to stabilise the industry, reduce reliance on traditional auction mechanisms, and bolster confidence among buyers in a challenging global market.
