Debswana Diamond Company, a joint venture between Botswana and Anglo American's De Beers, recorded a 25.1% decrease in sales of rough diamonds in 2023, according to data from Botswana's central bank.
The decline was due to an economic slowdown affecting the demand for luxury goods in the US and China, as well as heightened competition from lab-grown diamonds.
The central bank confirmed that Debswana's diamond sales decreased from $4.59 billion in 2022 to $3.44 billion in 2023, after achieving record sales in the previous year.
Debswana's production increased by 2% to 24.7 million carats in 2023, and the company has announced plans to reduce production this year in line with market conditions.
Debswana's senior corporate relations manager, Matshidiso Kamona told Reuters in January that the company planned to decrease production due to lower demand for rough diamonds in the global market, but did not disclose the production goal for 2024.
India, which processes 90% of the world's rough diamonds, put a stop to imports for two months in late 2023, while Okavango Diamond Company (ODC) called off its auctions scheduled for November and December.
Debswana sells 75% of its production to De Beers, while the remaining portion is purchased by the state-owned ODC.
However, Botswana and De Beers reached a new 10-year diamond sales agreement mid-last year.
This deal will increase ODC's share of Debswana output to 30%, with a gradual increase to 50% by the conclusion of the contract.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
