Botswana’s Okavango Diamond Company to Increase Contract Diamond Sales Amid Weak Global Market
Botswana’s state-owned Okavango Diamond Company (ODC) plans to increase the proportion of diamonds it sells through long-term contracts as it adapts to challenging global market conditions, acting managing director Lipalese Makepe said on Wednesday.
Contract sales provide greater pricing stability and predictability compared with auctions and tenders, which are typically more competitive and prone to price volatility.
The shift comes as rough diamond prices remain under pressure due to oversupply, softer consumer demand and the growing presence of laboratory-grown diamonds in the market.
Shift Enabled by New De Beers Agreement
Until recently, ODC relied primarily on auctions and tenders to market its stones. A previous agreement between the Botswana government and De Beers restricted ODC from directly competing in certain sales channels.
However, a new agreement signed in February 2025 paved the way for ODC to introduce contract sales. The company piloted the model in November and December with an average of 14 customers. That number has since expanded to 32 contracted buyers.
ODC now intends to sell approximately 50% of its allocation from Debswana through contracts by value, up from an initial target of 40%.
The remaining allocation will continue to be marketed through ten annual auctions, strategic partnerships and citizen-owned enterprises. Special auctions may also be considered.
Allocation Growth and Sales Outlook
In 2025, ODC sold about three million carats from an allocation exceeding four million carats. Sales volumes in 2026 are expected to remain broadly in line with its Debswana allocation.
Under the revised 10-year agreement, ODC’s share of Debswana production has increased from 25% to 30%, with a planned rise to 40% by the end of the term.
De Beers, currently owned by Anglo American, remains the world’s largest diamond company by value. Anglo American is pursuing a sale of the business as part of its broader portfolio restructuring.
ODC’s move toward a stronger contract-based sales model reflects Botswana’s efforts to stabilise diamond revenues while maintaining competitiveness in a subdued global market.
