The government of Botswana has announced a reduction in diamond production, citing weakening global demand and declining prices in the luxury goods market.
According to a statement from Debswana Diamond Company, a joint venture between the Botswana government and De Beers Group, production will be scaled back in the coming months to prevent oversupply and stabilize prices.
Officials say the decision follows a steady drop in demand from key markets such as the United States, China, and India, where economic slowdowns and shifting consumer preferences have dampened jewelry sales.
“Global diamond sales have softened due to reduced discretionary spending and the growing competition from laboratory-grown diamonds,” said a senior Debswana executive. “Adjusting our production ensures long-term market balance and sustainability.”
The diamond industry is the backbone of Botswana’s economy, accounting for more than 80% of export earnings and a significant share of government revenue. The cut in production is expected to affect export income, employment, and public spending, though authorities maintain that the move is temporary and strategic.
Economists warn that continued weakness in global demand could pressure Botswana’s growth projections, but some analysts believe the production cut will help support diamond prices in the medium term.
The government has pledged to diversify the economy further, emphasizing investments in tourism, energy, and manufacturing to reduce dependence on the diamond sector.