Botswana Holds Surprise Diamond Auction to Raise Revenue

Botswana has organised an unscheduled auction of about 1 million carats of rough diamonds through its state-owned Okavango Diamond Company (ODC), aiming to generate urgent revenue as the sector faces declining global demand. The sale, reported by Business Insider Africa on September 25, 2025, was arranged outside ODC’s normal calendar of tenders, signalling the government’s immediate need for funds.

The move comes as Botswana grapples with falling diamond prices and reduced demand in major markets such as China and the United States. Diamonds account for nearly 80% of the country’s export earnings and about one-third of its government revenue, making fluctuations in the sector a direct strain on national finances.

Industry analysts note that the auction reflects broader concerns in the market, where synthetic diamonds and oversupply have added pressure to natural gem sales. Debswana, the joint venture between the government and De Beers, saw its revenues drop by almost 50% in 2024, as highlighted by Business Insider Africa.

Officials indicated that two additional tenders are planned before the end of the year to help stabilize government revenue. The strategy underscores Botswana’s reliance on its diamond sector while raising questions about how the country will diversify its economy amid mounting global challenges.

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