ODC acts to support diamond prices
Mbongeni Mguni | Monday October 13, 2025 06:29
The recent tender of stones, estimated by Bloomberg to have a value of $100 million, resulted in bids below what the state-owned diamond trader was looking for.
Rough diamond prices have been under strain for a prolonged period, largely due to the incursion of cheaper synthetic stones, the underperformance of the Chinese market and more recently, the uncertainty caused by U.S trade tariffs on the industry.
“As custodians of Botswana’s national treasure, our priority is safeguarding the value of our diamonds,” said ODC managing director, Mmetla Masire, in a statement. “Sometimes, leadership means knowing when not to sell. ‘Withholding goods in the short term ensures better outcomes for the market, for Botswana, and for our partners. “We will not join the race to the bottom on prices, our focus is on protecting the integrity and enduring value of Botswana’s diamonds.”
The latest developments come amidst reports that some producers in the region have been selling at rock-bottom prices, undercutting the value proposition associated with the natural stones as they battle the cheaper lab-growns.
Natural diamonds leverage their value on rarity and exclusivity, but both of these factors are being compromised by high inventory levels in the market due to weakness at the retail end. Producers such as De Beers and traders such as the ODC have opted to hold onto stock and innovate around marketing and distribution, a position that however comes at significant financial cost.
The difficulties in waiting for the recovery of the market were laid bare recently when President Duma Boko publicly put pressure on De Beers to step up its sales activities and clearing of inventory, noting the fiscal crunch the government was battling.
The country’s primary diamond producer, Debswana, only has two customers - De Beers and the ODC - which purchase rough diamonds on a 70/30 split. However, this commitment has also come at a pain in the diamond downturn, as the two customers purchase at a certain price, then struggle to sell due to the pressure in the market.
Debswana is owned on a 50/50 basis by government and De Beers.
“When market dynamics are delicate, responsible leadership calls for measured action to align supply with demand and preserve the value of Botswana’s natural resources,” the ODC said.
According to documents on the ODC website, the state-owned trader sold $25.5 million in diamonds at its September auction, from $24.8 million in the July auction.
While De Beers no longer publishes its auction figures, CEO, Al Cook, told Mmegi in August that the diamond giant had bought its full allocation from Debswana in the first six months of the year.
“Diamond demand has been on a downturn, probably the worst downturn we've had since the 1930s. “So that naturally puts financial pressure both on De Beers and on the government and that produces challenges, fiscal and financial challenges. “I actually believe that in the face of all of those challenges, both the government and De Beers have actually done a good job in the way that we've sold diamonds, and in the way that we've balanced price, value and volume,” he said.