Africa's Diamond Giant Slashes Output Amid Global Market Weakness
Waleed Farouk
In the heart of Africa, the global diamond industry was rattled by a major announcement from Debswana, one of the world's largest diamond producers, revealing a significant cut in its output amid a prolonged slump in the global market.
The story began when the company — a joint venture between the Government of Botswana and mining giant De Beers — disclosed that its annual diamond production fell by 27% in 2024, dropping to just 17.93 million carats. This downturn is not temporary. The company anticipates further cuts in 2025, aiming for only 15 million carats — its lowest output in years.
Behind the decision lies a chain of challenges impacting the luxury industry, especially a noticeable drop in global demand for rough diamonds, stockpiling issues, and new U.S. tariffs that disrupted exports — particularly from India, a key hub for diamond cutting and trading. Faced with mounting pressures, Debswana moved to suspend several of its mining operations, including units at Jwaneng and Orapa, and to delay capital projects. However, it confirmed that it would continue developing its ambitious underground Jwaneng project — a strategic investment in the future of Botswana's mining.
The implications go far beyond company boundaries. Botswana's economy, heavily reliant on diamond exports, has been directly impacted. According to government data, diamonds accounted for 30% of the state's revenue and 75% of its foreign currency reserves in 2024. Still, that year saw the national GDP contract by 3%, with the IMF forecasting a further 0.4% decline in 2025.
Amid these setbacks, Debswana emphasized that it would prioritize voluntary separation packages to avoid forced layoffs, as the company braces for a prolonged market downturn while hoping for a future rebound.
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