Diamond slump to keep Botswana economy in recession.

Lab-grown diamond’s increasing popularity is creating the biggest disruption in the market since abundant alluvial diamonds were discovered on Namibia’s beaches early last century, causing prices to plunge, according to mining historian Duncan Money. It’s choking off the revenue that accounts for 80% of Botswana’s exports and a third of government income.

After repeated write-downs of its value, Anglo American Plc is looking to sell De Beers, the world’s biggest diamond company that mines almost all of Botswana’s gems in a venture with the government.

The President on Aug. 25 declared a public health emergency and implored pension funds and insurers to help fund the response. The government has frozen recruitment, and there are shortages of medication, medical supplies and equipment, according to Kefilwe Selema, president of the Botswana Doctors Union.

The country’s economic statistics tell a story of rapid decline and belie De Beers’ marketing catchphrase, ‘A diamond is forever.’