Botswana announces a 16% cut in its diamond production for 2025

Diamonds play a crucial role in Botswana’s economy, making up approximately 80% of the nation’s export revenue. This heavy dependence means that any downturn in diamond demand directly affects the country’s economic stability. This reduction comes amid slowing demand for natural diamonds, which face increasing competition from more affordable lab-grown alternatives.

To soften the economic impact of reduced production, the Botswana government has introduced initiatives encouraging the local processing of diamonds. Rather than exporting rough stones, there is now a push to polish and cut diamonds domestically. This approach aims to add value within the country, support local employment, and generate more income for Botswana, even as total diamond output declines.

Despite these efforts, the country faces the ongoing challenge of economic diversification. The current downturn has highlighted the risks associated with heavy reliance on a single industry. Botswana is likely to need further steps to broaden its economic base to protect itself from future market fluctuations and foster sustainable growth.