Botswana’s state-owned Okavango Diamond Company (ODC) is shifting to contract sales with buyers as it adapts to a prolonged slump in the global diamond market. The strategy aims to provide more predictable pricing and demand compared with traditional auction and tender systems, which have become increasingly volatile amid weak consumer demand and surplus inventories, according to Reuters.
Acting Managing Director Lipalese Makepe said ODC began piloting contract sales in late 2025 with 14 buyers, and has since expanded the programme to 32 contracted customers. Under the new approach, roughly half of ODC’s Debswana-allocated diamonds will be sold through contracts, while the remainder will continue to be marketed via auctions and strategic partnerships.
The shift follows a revised agreement with De Beers in February 2025, which lifted previous restrictions on ODC selling rough diamonds directly to buyers. Contract sales help reduce exposure to price swings exacerbated by surplus supply, weaker demand for natural stones, and competition from lab-grown diamonds, as reported by MarketScreener.
In 2025, ODC sold approximately 3 million carats of its allocated supply from Debswana, a joint venture between the Botswana government and De Beers and expects similar volumes in 2026 under the new sales mix. Long-term plans foresee ODC’s allocation increasing from 30% to 40% over the next decade.
