President Duma Boko has announced plans to change how Botswana manages its mineral sector, stating that all diamonds mined in the country must be cut and polished locally. The policy is part of a government effort to expand local processing of minerals, including diamonds, copper, and nickel, before export.
Shift to Domestic Diamond Manufacturing
Speaking at a public meeting in Ramotswa, President Boko said: “No diamond will leave this country raw — all will be cut and polished here.” He added, “We are moving to a point where no mineral will leave this country without being processed. We will bring the laws required to make this happen — and when we do, nothing will stand in our way.”
Botswana currently cuts and polishes around 10% of its rough diamond production. Most stones are exported in rough form to international centres, particularly India. Previous efforts by the government and De Beers to build local manufacturing capacity have seen limited uptake, largely due to the cost of operating in Botswana.
Economic Context
The policy announcement comes amid economic challenges. Diamonds account for approximately 80% of Botswana’s export earnings and 30% of its GDP. However, sales by Debswana — the joint venture between De Beers and the government — dropped by more than half last year.
The country’s economy contracted by 3.1%, the budget deficit widened to 9% of GDP, and foreign reserves have been significantly depleted. The government has indicated that increasing domestic processing of minerals is intended to improve economic resilience and retain more value from the country’s natural resources.
Potential Implications for the Jewelry Industry
If implemented, the requirement to process all diamonds locally may alter supply patterns for Botswana-origin stones. Jewelry businesses that rely on rough supply from Botswana may face changes in availability, lead times, or costs, depending on how quickly local manufacturing capacity is expanded.
The outcome will depend on the timing of legislative changes and the capacity of the domestic manufacturing sector to absorb increased volumes. Further developments will be monitored closely by stakeholders across the diamond supply chain.
