BOTSWANA has launched an unprecedented ad-hoc diamond auction in an effort to raise revenue as the southern African nation grapples with a slump in global gem markets, said Bloomberg News in an article on Thursday.
State trader Okavango Diamond Company is offering about one million carats of rough diamonds through a closed tender. The sale marks a significant departure from the usual scheduled auctions conducted for registered buyers, said the newswire.
“The tender is part of our ongoing efforts to provide sales platforms that are transparent, competitive and responsive to the needs of the market,” said ODC spokesperson Dennis Tlaang. He told Bloomberg News that his company was “selling at prices that will not have a negative impact on the market.”
The emergency sale represents the first of three similar ad-hoc tenders planned before year-end, said Bloomberg.
Diamonds constitute 80% of Botswana’s export sales and approximately one-third of state revenue, forming the backbone of the economy for decades.
However, the nation has been severely affected by prolonged price declines caused by US tariffs, reduced Chinese luxury spending and intense competition from cheaper laboratory-grown alternatives, said Bloomberg News.
S&P Global Ratings recently downgraded Botswana’s long-term sovereign credit rating and predicts the economy will contract for a second consecutive year in 2025.
ODC receives 30% of diamonds produced by Debswana, a joint venture equally owned by Botswana and De Beers.
President Duma Boko has indicated his government aims to secure controlling ownership of De Beers by October’s end, as Anglo American divests its majority shareholding in the diamond giant.
