GABORONE, June 24 – Botswana is beginning to see a gradual improvement in demand for natural diamonds across key markets, including the United States and China, according to Mines Minister Bogolo Joy Kenewendo.
The minister said the recovery has been supported in part by a global campaign promoting natural diamonds. Even so, Botswana plans to keep a tight grip on supply as the industry continues to deal with weak prices and changing consumer preferences.
Diamonds typically account for about one third of Botswana’s national revenue, making the sector a major source of government income. However, the global diamond market has remained under pressure due to economic uncertainty and the growing popularity of lab grown stones. Last year, Debswana Diamond Company, the joint venture between Botswana and De Beers that generates about 90% of the country’s diamond sales, temporarily suspended production at some of its mines.
“We have pushed through what was inventory in Botswana and we are now focusing on managing our run of mine,” Kenewendo said, adding that maintaining supply discipline remains important for market stability.
Meanwhile, talks over the sale of De Beers are entering their final stage, although Kenewendo declined to provide further details because of confidentiality agreements.
Anglo American put De Beers up for sale as part of a wider restructuring after falling diamond prices and increased competition from synthetic diamonds. Botswana, which already owns a 15% stake in De Beers, has shown interest in increasing its holding, alongside Angola and Namibia.
Angola’s Mines Minister Diamantino Pedro Azevedo said his government wants a stake that gives it a voice in strategic decisions and noted that both countries are aligned on the proposed ownership structure.
De Beers Chief Executive Al Cook recently said a deal could be completed within weeks and is expected to result in a public private partnership. Sources familiar with the process said two investor groups remain in the running after the list was narrowed from six potential bidders last year.
