Debswana secures board approval for multi-billion diversification drive
Lewanika Timothy | Monday February 23, 2026 06:05
With the current squeeze on rough diamonds not abating, Debswana has, since last year, been mulling a diversification drive away from diamonds to reduce dependence on its single commodity being diamonds.
Industry insiders have revealed to BusinessWeek that for many years, there was resistance to talks of Debswana doing any commercial activity away from diamonds, with the current change of mind coming from successive years of declining revenues and rough diamond values in international markets.
Speaking last week at the Africa Mining Indaba in Cape Town, Debswana's chief operations officer, Koolatotse Koolatotse, revealed that Debswana’s leadership had greenlighted an investment mandate away from rough diamonds to ensure the sustainability of operations and the economic contribution of the miner.
According to Koolatotse, plans are already in motion to identify possible blue-chip opportunities that can ensure Debswana continues its hefty contribution to the mainstream economy, even without rough diamond revenue.
“Global markets dropped by 23% between 2023 and 2024. Our revenues dropped by 46% between 2023 and 2024, and so whatever has happened to diamonds has hit the economy. “In the past, we didn’t press the diversity button because we were comfortable, but now we are at a crash zone. “We will press three buttons, the most important one being the diversity button. “We are preparing future businesses before we run out of diamonds, and the decision has been made that we will be in business beyond diamonds,” he said.
Insiders close to the matter further revealed that Debswana is exploring the commercial deployment of its technical expertise through Naledi Mining Services, positioning it to pursue mining opportunities in other mineral segments. Naledi is understood to be assessing prospects in copper and platinum mining, not only domestically but under a broader Sub-Saharan expansion strategy.
In parallel, Debswana is said to be examining green energy investments, including large-scale solar generation, amid anticipated structural reforms within Botswana Power Corporation that could separate power generation and distribution. Sources indicate Debswana may leverage its financial capacity to establish utility-scale solar operations capable of supplying electricity to the national grid.
The global diamond market has been bearish as knock-on effects of the pandemic, together with weakening demand from key markets such as China, slowed sales and demand. In recent quarters, rough diamond inventories have swelled across the supply chain, leading to a glut at midstream cutting and polishing hubs that once served as strong demand points.
Buyers in key markets such as China and the United States have tightened spending on luxury goods, prompting retailers to defer replenishment purchases. This has resulted in prolonged stock build-ups, forcing producers to discount rough inventories and restrain new supply, compressing revenues and eroding pricing power across the value chain.