Diamond downturn: Boko leads US charge to rally recovery

Mbongeni Mguni | Friday June 6, 2025 10:15

President Duma Boko has a busy June, rallying global partners for the recovery of natural diamonds at a time when the dreaded trade tariffs by the United States administration are weeks away from kicking in. Boko, accompanied by his top lieutenants, is due to make his debut at the JCK Show in Las Vegas today, the industry premier trade event where all segments of the diamond pipeline meet, trade, exchange ideas and map out strategies.

The annual event attracts more than 30,000 delegates and is the premium platform for debates around the diamond industry. Saddled with a prolonged downturn tracing back to late 2023, any hopes of recovery for diamonds were this year dealt a blow by President Donald Trump’s global tariffs. The trade measures not only threaten a 37% levy on Botswana’s direct exports to the US, but similarly punitive rates on other key centres through which Botswana stones flow such as India and Antwerp. For Botswana and other partners in the natural diamond industry, this year’s event is critical for garnering support for the stones’ recovery and mapping out the critically required marketing strategies, as well as the budgets needed to spur demand in the key retail period which traditionally falls between Thanksgiving in the U.S and the Chinese New Year. Rob Bates, JCK news director and prominent diamond industry journalist, shared with Mmegi what he believes are some of the points Boko will have to keep in mind in order to secure success in his engagements. “It would be great if President Boko introduced himself to the industry,” Bates told Mmegi.

“I also believe people are worried about the future of the natural diamond business. “He should assure attendees that Botswana, and its partner De Beers, are committed to the diamond industry long term, and that they have a plan to turn around the current slump.” Botswana, in fact, has signed on with other industry partners to conduct “category marketing,” which involves diamond producers, retail jewellers and countries, linking up to promote natural diamonds. Natural diamond industry leaders acknowledge that over the decades, individual companies instead prioritised marketing their specific brands or products, a focus that left the industry open to synthetics and other non-diamond jewellery. Botswana and De Beers, in their recently inked sales agreement, have a clause to annually agree on marketing investment to boost natural diamond sales, with their financial contributions determined by the proportion of their shares of Debswana’s supply. Botswana and the Natural Diamond Council, the apex global body for marketing natural diamonds, are also working together, alongside other countries, to mount an industry-wide campaign to resuscitate demand for natural stones. Bates said Botswana had its work cut out for it in lobbying at the JCK. “Many retailers prefer to sell natural diamonds, but too many of their consumers are interested in lab-grown (which sometimes has better margins). “I would also like to see people from Botswana tell the “positive diamond story” in their own words, not just to the trade, but to the U.S. consumer media and general public. “Boko shouldn’t just talk to JCK, but The New York Times. “It’s one thing if I talk about what diamonds mean to Botswana; it's another when Batswana tell the story themselves. “He needs to put a human face on what is happening in your country.

“In the end, retailers respond to what consumers want, and I hope Botswana makes more of an effort to speak to U.S. consumers directly,” said Bates. The human face of what is happening to the country due to the diamond slump became even more horrifying this week. Finance Ministry supremos revealed that public finances were essentially a hand-to-mouth affair, with national savings drained, revenue inflows stuttering and loans mounting, while invoices go unpaid and salaries are threatened. According to Bates, even within the attempt at category marketing, there are nuances that Botswana and her partners should be on the look out for. “Category marketing is not a cure-all, but I believe it’s needed and it’s clearly something that’s been very successful for the diamond industry historically,” Bates said.

“Over the last few years, many lab-grown brands have hired marketing firms, mostly parroting the same message such “lab-growns are eco-friendly,” they’re the same as naturals, etc. “That has largely swamped communications from the natural diamond business. “We’re seeing less of that lately as lab-grown prices have fallen but it feels like the damage has been done.” For Bates, the key could be incorporating more individual brand marketing as well. “That’s how the Swiss watch industry regained its footing after the “quartz crisis” in the 1980s. “It’s odd that we’ve seen so many lab-grown dot-coms spend money on PR firms, when there’s multi-billion natural diamond companies who barely spend anything on marketing. “In the end, the natural diamond industry will only recover if it differentiates itself from lab-growns and offers unique innovative product that spurs demand,” he said. According to Bates, the natural diamond industry received a “bit of a boost” after the JCK last year and it’s possible again this year. It is presently unclear whether U.S government officials will feature in the JCK this year, but Boko and his team will have an opportunity to engage with them after they leave Las Vegas. After the JCK, Boko is due at the annual World Federation of Diamond Bourses (WFDB) dinner in New York where he will give a keynote address.

The WFDB is the official organisation of the international diamond trading sector, with more than 28,000 members. “Secretary of Commerce Howard Lutnick, who is a key player in the trade talks, will address the meeting of the World Federation of Diamond Bourses after the show, so a lot of people will be interested in what he has to say,” Bates told Mmegi. Ahead of the July start of global tariffs by the U.S administration, Boko and his team will be hoping their engagements in the world’s biggest market for diamonds, bear fruit.