The slow market conditions that were seen in 2023 persisted throughout the first quarter of 2024, resulting in a 48.3% decline in the sales of rough diamonds at Debswana Diamond Company, according to figures issued by Botswana's central bank.
Diamond sales at Debswana, a company that De Beers and the government of Botswana jointly control, totalled $560.9 million, down from the $1.085 billion reported for the same period last year.
In local currency pula terms, the decline in Debswana sales was slightly less at 45.6% to 7.676 billion pula ($560.35 million), according to Reuters.
In 2023, the global diamond market will struggle as a result of global macroeconomic uncertainty and competition from lab-grown gems.
As a result, major industry players in the final quarter of the year implemented measures to alleviate a supply glut in the pipeline that was the result of sluggish consumer demand.
Although the speed of recovery is anticipated to be modest over the remainder of the year, the market has begun to show signs of an upturn.
Debswana sells 75% of its output to De Beers, with the state-owned Okavango Diamond Company (ODC) acquiring the remaining 25%.
Nevertheless, in June of last year, Botswana and De Beers struck a new ten-year diamond sales agreement. Under this arrangement, ODC's portion of Debswana's output will increase to 30% at the time of the new contract's signing, and it will progressively increase to 50% by the end of the new contract.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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