Botswana’s Debswana plans 20% diamond output hike in 2026

Botswana’s Debswana Diamond Company expects to raise diamond production by about 20% this year, a central bank official said on Wednesday, a potential boost to an economy seeking to recover from a prolonged downturn in the global diamond market.

Debswana — a joint venture between the Botswana government and De Beers that produces about 90% of the country’s diamonds — plans to increase output to 18 million carats in 2026 from 15 million carats last year, when production was cut sharply in response to weak demand.

“(The increase in production) is what would be driving the economy this year,” Thato Mokoti, the central bank’s deputy director for research and financial stability, told a press briefing.

A company spokesperson confirmed the planned production increase.

Diamonds typically account for about a third of Botswana’s fiscal revenues and roughly three-quarters of its foreign exchange earnings, leaving the economy highly exposed to swings in global demand.

A downturn that began in 2023 — driven by economic uncertainty and rising competition from lab-grown stones — forced producers to scale back.

Debswana reduced output by 16% last year, while Botswana’s broader economy contracted for two consecutive years.

In February, Finance Minister Ndaba Gaolathe said the economy was expected to rebound to growth of 3.1% in 2026, hinging in large part on a recovery in diamond production and demand.

Minerals and Energy Minister Bogolo Joy Kenewendo told Reuters on Tuesday that Botswana is seeing a soft recovery in diamond demand in key consumer markets such as the US and China, supported in part by a global marketing campaign for natural diamonds.

Before the downturn, Debswana typically produced about 24 million carats a year.

Managing director Andrew Motsumi told the media on Tuesday that Debswana is restructuring to become leaner and more efficient, with plans to cut annual operating costs by a third to 6 billion pula ($416 million) by 2028.

($1 = 14.4092 pulas)

(By Brian Benza; Editing by Nelson Banya and Ros Russell)