GNV News – January 23, 2026

On January 20, 2026, Botswana’s Ministry of Finance announced that due to an oversupply of rough diamonds from Botswana, downsizing and suspension of mining and other operations have continued. Botswana is the world’s second-largest producer of rough diamonds after Russia, and in 2024 alone it produced 3,600 kilograms of diamonds. Meanwhile, at the end of December 2025, the country’s diamond inventory reached 2,400 kilograms—nearly twice the allowable capacity of 1,300 kilograms. The jewelry-related industry in Botswana accounts for about one-third of the country’s gross domestic product (GDP), and there are concerns about the negative economic impact caused by the slowdown in its activities.

The oversupply is linked to the decline in diamond prices, and one of the causes cited is a global decrease in demand for natural diamonds worldwide. In the United States and China, the main destinations for diamond supply, there is growing popularity for more affordable lab-grown diamonds, leading to waning demand for expensive natural diamonds. In addition, in other markets such as India, there is also the factor that purchasing power has declined due to high tariffs imposed by the United States, according to reports.

In Botswana’s diamond mining sector, Debswana, a joint venture between the De Beers Group under Anglo American and the government of Botswana, wields dominant influence. The government of Botswana holds 50% of Debswana’s shares and 15% of De Beers’ shares, and there is also a move to acquire De Beers with the aim of diversifying the economy, increasing the share of profits going to Botswana, and developing domestic processing facilities. Although Botswana’s current stockpile problem is in the longer term rooted in the rise of cheaper lab-grown diamonds, on this point De Beers’ parent company Anglo American has shown a willingness to let go of the De Beers Group as part of a business restructuring to focus on more profitable copper and iron. Therefore, the current situation could also affect the future relationship between Botswana and De Beers.

Learn more about Botswana → “Concerns About the Future of Democracy in Botswana”

Learn more about mineral resources → “Mineral Resources and the World: Where Do the Profits Go?”

Jwaneng Mine in Botswana, where open-pit diamond mining is conducted (Photo: GRID-Arendal / Flickr [CC BY-NC-SA 2.0])