Botswana’s diamond stockpile has expanded sharply as weak global demand and falling prices continue to weigh on sales, underscoring the challenges facing one of Africa’s largest diamond producers. The country’s finance ministry said inventories had risen to about 12 million carats by the end of December 2025, nearly double the government’s preferred stock level of around 6.5 million carats, reflecting subdued market conditions, according to figures cited by Reuters.
The prolonged price slump has been driven by softer consumer demand in key markets and growing competition from lab grown diamonds, which have pressured prices for rough stones. Debswana, the joint venture between the Botswana government and De Beers that accounts for the bulk of national output, has responded by curbing production at times to avoid adding to excess supply, as reported by MarketScreener.
Botswana remains the world’s second largest diamond producer by volume after Russia, with output of about 18 million carats in 2024, according to government data. Diamonds are a cornerstone of the economy, contributing roughly one third of government revenue and the majority of export earnings, but the current inventory build up has limited near term prospects for higher sales and revenue growth.
Officials have warned that external pressures could prolong the downturn. The finance ministry noted that higher trade tariffs in major consumer markets and slower global growth risk keeping prices under strain, reinforcing the need for tighter production discipline and faster progress on economic diversification, as highlighted in official budget documents referenced by CediRates.
