Botswana’s Diamond Dependence Faces Uncertain Future

Botswana, Africa’s leading diamond producer, is facing economic uncertainty as the global diamond market struggles. The country’s economy relies heavily on its diamond mining industry, which is responsible for 80% of its exports, approximately a quarter of its GDP, and a third of its tax revenues. Diamond sales have funded the construction of schools, hospitals, and other infrastructure. However, competition from synthetic diamonds, which are cheaper and dominate 50% of the US market, has driven down prices by 30% since 2022, threatening the Botswanan economy. As a result, the authorities are trying to diversify its economy to include copper, nickel, manganese, and its reserves of rare metals. However, experts believe it has insufficient quantities of these metals to make up for the loss of diamond-generated revenue.

SOURCE: LE MONDE