Africa’s largest diamond producer, Botswana, has announced a 16% cut in diamond production for 2025, a move that reflects mounting pressure from a weakening global market and rising competition from lab-grown alternatives.

For a country that depends on diamonds for around 80% of its export revenue, the decision marks a significant shift with deep economic implications.

The production cut comes as demand for natural diamonds continues to slow, forcing industry leaders to rethink strategies.

Debswana, the joint venture between the Botswana government and De Beers that accounts for 90% of the country’s diamond output, reported a nearly 50% drop in revenue in 2024.

The slump has led to critical measures aimed at protecting financial stability and preserving long-term operations.

As part of its response, Debswana has temporarily suspended production at two of its most important mining sites: the Jwaneng and Orapa mines.

Jwaneng, known for producing some of the highest-quality diamonds in the world, is widely seen as the company’s crown jewel. Orapa, by land area, is the largest diamond mine on the planet.

Halting production at both sites signals the gravity of the market downturn and the steps Botswana is prepared to take to navigate it.

In an effort to reduce the economic fallout, the Botswana government is accelerating efforts to process more diamonds locally.

Rather than shipping rough stones abroad, the country is encouraging domestic cutting and polishing, a move aimed at creating jobs, retaining more value within the country, and boosting income even as total production declines.

Still, the crisis has once again exposed the risks of Botswana’s heavy reliance on a single commodity.

With the diamond market facing long-term structural shifts, the government is under growing pressure to diversify the economy and reduce vulnerability to global price swings.

While diamonds remain a pillar of national revenue, the 2025 output cut underscores the urgent need for Botswana to adapt to changing global dynamics and build a more resilient economic future.