Kenewendo sees hopeful signals in diamonds
Mbongeni Mguni - Pauline Dikuelo | Monday March 2, 2026 10:34
A downturn in diamond sales and associated productivity since the third quarter of 2023 has largely been responsible for two consecutive contractions in the economy. The slowdown has also deepened budget deficits, drained government savings, triggered a financial sector liquidity crunch and also accelerated a pile-up in public debt.
Responding to the 2026 Budget Speech on Monday, Kenewendo said that whilst the country needed to accelerate its transformation agenda, diamonds, as challenged as they are, continue to play a significant role in the economy.
She noted that through various interventions made by Botswana, its partners, such as De Beers, as well as entities such as the Okavango Diamond Company and other stakeholders, the industry was reaching towards a firmer handhold in its recovery.
“Markets are returning to the natural diamond industry, and we are seeing this,” she told legislators. “During the December holidays, sales were positive, and the jewellery industry is positive. “Manufacturing hubs are asking for more diamonds, and we intend to respond adequately. “It is not only about Botswana, but it's about reigniting the whole industry in partnership with industry partners and countries.”
Some of the initiatives undertaken last year include working with various governments to ensure that the word 'diamonds' is reserved for natural diamonds and excludes synthetics, a key distinction necessary to support marketing efforts.
Kenewendo said India and France had agreed on the distinction, whilst Belgium had agreed that the weight classification of 'grammes' should only be applied to natural diamonds. The Gemological Institute of America (GIA), the global leader in setting standards for the grading of all gemstones, had agreed that the 'Four Cs' diamond classification of Cut, Colour, Clarity, and Carat should be exclusively reserved for naturals.
The minister said a major achievement was the formation of the Luanda Accord under which Botswana and a growing number of partners have agreed to dedicate revenues to fund a global industry-wide marketing campaign for diamonds.
The industry approach, known as ‘category marketing’, was abandoned more than a decade ago by industry participants who shifted towards marketing their own brands, unaware that synthetics would slowly take up market share against the industry as a whole.
“I wanted to highlight that for 10 years, there was no category marketing in diamonds, for 10 years,” Kenewendo said. “We started, and we resuscitated marketing for diamonds last year and had consumer education, making sure we are clear about the differentiation between natural diamonds and the differentiation with synthetics, making sure that there is last mile disclosures that are needed to inform the consumer of what they are buying. “Provenance was important, and we invested in traceability and ensuring that those that sell the diamonds can tell the Botswana story.”
The Minister’s remarks came as De Beers unveiled yet another grim set of results, indicating the depth of the prolonged downturn in demand. The diamond giant last Friday unveiled 2025 results showing Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of negative $551 million, from a negative $25 million in 2024. EBITDA is an indicator of core earnings.
The company’s financial performance comes as its major shareholder, Anglo American, took a $2.3 billion impairment on the value of the diamond company, the third such writedown of its investment in consecutive years.
De Beers Executive Vice President Diamond Trading said, despite the numbers, the company was seeing encouraging signals of recovery, and there was demand for larger natural diamonds, especially in the United States.
“We have seen our marketing initiatives impacting consumer attitudes in relation to natural diamonds, and although it has been a difficult year, we are seeing recovery,” he told BusinessWeek. “India is going to be our focus area where we are seeing real growth, whilst China, we have seen recycling becoming a major issue and an imbalance between demand and supply. “However, we are starting to see stability, which won't happen overnight, and we have to create desire for diamonds beyond marriage.”
In the upcoming financial year, government expects minerals revenues, which consist of mineral taxes, royalties and dividends, to remain largely flat year on year at P12.2 billion. At that level, the mineral revenues will contribute approximately 16% of budget revenues, down from 46% of revenues in 2022–2023, the last bumper year for minerals.