Botswana is facing mounting pressure in its diamond sector as national inventories climb to 12 million carats, nearly double the 6.5 million-carat benchmark, amid weakening global demand and rising competition from lab-grown diamonds.
The glut has led to falling diamond prices and slower production, developments that are now hitting government revenue hard. Diamonds remain the backbone of Botswana’s economy, accounting for a significant share of export earnings and public finances.
Industry watchers say the surge in inventory reflects cautious buying by global traders and consumers, as well as a structural shift in the market driven by cheaper, lab-grown alternatives gaining acceptance worldwide.
The situation underscores just how critical the diamond industry is to Botswana — and how vulnerable public finances can be when global market dynamics turn unfavourable.
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