The figures revealed that the value of diamonds sold by the diamond mining company, which is owned 50/50 by De Beers and Government of Botswana, in the first three months of the year slowed to P7.6 billion from P14.1 billion over the same period last year. Bank of Botswana figures released recently showed that diamond sales have been having a slow recovery post shocks imposed by geopolitical tensions and overall low market demand. Debswana sells 75% of its production into the De Beers’ ecosystem with the balance going to the Okavango Diamond Company (ODC), the state-owned diamond trader.
Rough diamond prices and demand tumbled from last year, owing to a glut in the market caused by record sales last year, combined with the uncertain global economic outlook this year. Before netting a record low of diamond sales in November of 2022, the August sale by De Beers, brought in a provisional $370 million, a 42% sale drop on a year-on-year comparison reflecting the challenging period rough diamonds are enduring. By comparison, sales at the previous auction, the sixth of the year, were measured at $411 million. Leading contributors to this year’s tough diamond performance were weakening demand from the world’s leading economies. The USA, which accounts for more than 50% of the world’s retail diamond market demand, has been battling inflation with the Fed hiking interest rates in progressive quarters. Fed hikes shrank consumer disposable incomes, weakening demand for the rough stones.
