Debswana Q3 sales drop by 66%
Tuesday, November 12, 2024 | 1630 Views |
Diamond PIC: LUCARA
According to data from the Bank of Botswana Economic Financial Statistics, the value of diamonds sold by Debswana fell from P9.8 billion in Q2 of 2024 to P3.3 billion in Q3, a 66% quarter-on-quarter drop. Rough diamond sales refer to the value of Debswana mined diamonds sold to both De Beers and Okavango Diamond Company.
In Q3 of 2023, rough diamond sales were capped at P8.7 billion, only to contract by P5.3 billion to the current year's P3.3 billion. The diamond market has been subdued by China's weak economic performance coupled with high interest in America that curtailed spending in the past quarters. The ripple effect of this continued downturn in diamond sales has seen the downfall of exports, tipping Botswana into a negative trade balance. Statistics Botswana noted that in July, the country’s trade balance – or the difference between the values of exported and imported goods, widened to a shortfall of P4.2 billion from a deficit of about P3 billion in June.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...