: Botswana's Diamond Industry Polishes its Act: Shifting from Raw Exports to Local Refining
SUBHEADLINE: Government Calls for Stronger Policy Support to Boost Economy and Create Jobs In a bid to revitalize its faltering economy, Botswana is shifting its diamond industry's focus from raw exports to local polishing, cutting, and trading. This strategic move aims to maximize economic benefits, create jobs, and reduce reliance on foreign centers. But, will it be enough to counter the declining global demand and rising popularity of lab-grown diamonds? According to Zoe Diamond Polishing MD Ada Thela, more Batswana are being trained as skilled polishers and technicians, a crucial step in the right direction. However, Thela emphasized that challenges persist, including accessing global markets and meeting international standards. She urged for stronger policy support and investment to help Botswana become a significant player in refined diamonds. Botswana's President, Mokgweetsi Masisi, has called for diamonds to be polished and cut locally, a move that is part of a broader "beneficiation" strategy. The government plans to incentivize companies to establish cutting and polishing factories in Botswana, generating more jobs and revenue from the diamond industry. The diamond sector is critical to Botswana's economy, accounting for 80% of its export revenue. In 2022, the country exported a staggering USD 7.4 billion in diamonds, making it the sixth-largest diamond exporter in the world. However, with global demand dwindling and lab-grown diamonds gaining popularity, the industry is facing unprecedented challenges. Debswana, a joint venture between the government and De Beers, has already announced a 16% reduction in diamond output for 2025. The company has also temporarily paused production at its flagship Jwaneng mine and Orapa mines, the world's largest by area. Despite these challenges, Botswana remains committed to ethical and sustainable diamond mining practices. The government has implemented measures to ensure the traceability and transparency of rough diamond exports, aligning with G7 requirements to prevent sanctioned diamonds from entering G7 markets. As Botswana navigates this new trajectory, it is essential to address the high costs of doing business that have hindered progress in the past. The government's policy shift is a step in the right direction, but it requires sustained investment and support to reap the desired benefits. In conclusion, Botswana's diamond industry is at a critical juncture. By shifting its focus to local refining, the country can potentially boost its economy and create jobs. However, it is crucial to address the existing challenges and adapt to the changing global landscape. As Botswana looks to the future, one thing is certain – the diamond industry must evolve to remain relevant.
PHOTO CAPTION: A diamond polisher at work in Botswana. The country is shifting its focus to local refining to maximize economic benefits and create jobs. (Credit: Gabz FM News)