Botswana’s main diamond company has paused production at some of its mines, citing a prolonged downturn in global demand.

Debswana, a joint venture between the government and global mining giant De Beers, saw its sales revenue drop by almost 50 per cent in 2024.

Botswana is the world’s largest producer of diamonds by value. The industry accounts for a quarter of the country’s total annual income (GDP), according to the International Monetary Fund.

On Friday, June 6, 2025, Debswana said production this year is being scaled back to 15 million carats – approximately a 40 per cent decrease from its output in 2023.

The company, which accounts for around 90 per cent of Botswana’s diamond sales expects this reduced output will lead to “significant cost savings” across areas like fuel and electricity.

In a statement, Debswana said it continued to “prudently navigate the challenging market conditions” citing low demand and “emerging pressures such as US-imposed tariffs”.

The global market for mined diamonds has been experiencing a decline since 2023, partly due to the availability of lab-grown alternatives.

In response to this downturn, Debswana paused production at its flagship Jwaneng mine, as well as its Orapa mines, last month. Each mine will be closed for three months in total.

The southern African country has for decades been trying to shift its economy away from being dependent on diamond sales, to varying degrees of success.

 This strategic pause is intended to reduce inventory build-up and manage operational costs, while aligning output with the weaker market conditions.

Although successive governments have boosted sectors such as tourism, finance and the mining of minerals such as copper, diamond sales still make up three-quarters of Botswana’s foreign exchange earnings.

This income is likely to be hit by Debswana’s decision to temporarily close its mines.

The company has stressed that no involuntary job cuts are planned, although it continues to offer voluntary redundancy.

As a result of the sustained downturn in the global diamond industry, Botswana will cut its 2025 economic growth forecast to almost zero, a senior finance official was quoted as saying by the Reuters news agency.

Botswana’s only operational gold mine, Mupane, has recently been sold and ceased operations in March 2024. The mine was located near Francistown and extracted gold from the Mupanipani Hills. While Mupane is no longer operational, the Tati Greenstone Belt near Francistown, and the Mmadinare Gold Project in the Central District, continue to be explored for gold.