The economic fortunes of the Southern Africa country of Botswana were transformed back in the mid 1960s when shortly after gaining independence from Britain, its first diamond mine was discovered. A partnership with the world’s biggest diamond firm DeBeers ensured Botswana’s diamonds gained global attention and with some of the world’s biggest diamonds been mined in the country, it now ranks just below Russia in terms of its importance in the industry.
But post pandemic, the global market has seen a shift in demand for mined diamonds, with consumers in countries like China, who accounted for around thirty percent of global demand, falling away.
Another reason for this shift is the emerging popularity of lab grown diamonds. Originally used in industrial machinery, lab diamonds are now been refined for the jewellery market at a fraction of the price of mined diamonds, with the majority of consumer interest coming from the United States.
Botswana has been trying to ride this wave with a policy of diversification, to allow it to generate more export revenue. But its new Government, who have only been in power since October last year, are dealing with a large budget deficit not helped by the low level of diamond revenues. It faces a hard task in trying to revive demand for mined diamonds across the global market.
So, on this week’s Inquiry, we’re asking ‘Are diamonds forever in Botswana?’
Contributors:
Dr Gloria Somolekae, Executive Director, BIDPA, Botswana
Jessica Warch, Co-founder, Kimai, London
Edahn Golan, Diamond Industry Analyst, Israel
Dr. Keith Jefferis, Managing Director, Econsult Botswana
Presenter: Charmaine Cozier
Producer: Jill Collins
Researcher: Maeve Schaffer
Editor: Tara McDermott
Sound engineer: Craig Boardman
Production co-ordinator: Tammy Snow
(Photo: Karowe diamond in Botswana. Credit: Lucara Diamond/EPA-EFE/REX/Shutterstock)
