The country’s diamond exports in the first half of the year reached P24.1 billion compared to P23.5 billion over the same period last year, showing surprising resilience despite a prolonged downturn in the key sector.
Preliminary data released by the Bank of Botswana shows that diamond exports began the year significantly weaker, being measured at P7.8 billion in the first quarter, compared to P11.7 billion over the corresponding period last year. However, in the latter part of the first half, exports picked up to P16.3 billion between April and June, compared to P11.8 billion over the same period last year.
While the central bank data did not provide reasons behind the trends, the numbers suggest a stronger outflow of inventories that the country has been sitting on due to the downturn in diamonds. While De Beers, the main actor in the country’s diamonds, does not give out information on its stockpiles, at some point last year, it was estimated that the company had over $2 billion in inventory as a result of low retail demand.
Analysts also believe the steady exports also suggest frontloading by exporters to avoid the U.S tariffs imposed by the Trump administration.
In addition, there has been speculation in the market of greater ad hoc sales by the Okavango Diamond Company, beyond the auction system currently in place.
