Diamonds grown in labs are robbing Botswana of riches
INTERNATIONAL – AFRICA
15 SEPTEMBER 2025
Why Botswana is Scrambling for Alternatives
- Diamond dependence: Diamonds contribute ~30% of GDP and 80% of exports (IMF).
- Falling prices:
- Peak (May 2022): $6,819 per carat.
- Dec 2024: $4,997 per carat (World Diamond Council).
- Competition: Lab-grown diamonds from China and India are cheaper and gaining popularity.
- Vulnerability: Botswana most exposed in southern Africa; Angola, Namibia, and South Africa also at risk but less dependent.
Historical Context
- 1960s diamond discovery lifted Botswana from poverty.
- Diamonds have remained its economic backbone since then.
- Now facing pressure as lab-grown market disrupts natural diamond premium.
Botswana’s Response
- Sovereign Wealth Fund: Launched to build a resilient, diversified economy beyond diamonds.
- Diversification paths:
- Luxury wildlife tourism.
- Medicinal cannabis market.
- Solar energy (abundant sunshine, 70% desert).
- Strategic options:
- President Duma Boko suggested taking majority stake in De Beers.
- Explore selling Botswana’s diamonds independently.
