Botswana, the world’s top diamond producer, is ramping up efforts to attract affluent young American buyers to its natural diamonds amid growing competition from lab-grown alternatives.
To capture their attention, the country is leveraging social media platforms like Instagram and TikTok. As part of this strategy, Botswana recently hosted an exclusive luxury event in New York’s Greenwich Village, where social media influencers were treated to a fine dining experience at a Michelin-starred restaurant, according to Bloomberg.
The goal was to persuade millennial and Gen Z consumers to choose natural diamonds over synthetic ones.
Botswana’s 37-year-old Minister of Mines, Bogolo Kenewendo, emphasized the importance of this initiative, stating:
“One of our strategies is to really counter synthetics.”
Kenewendo is leading Botswana’s push to promote natural diamonds as the country faces increasing pressure from lab-grown alternatives, which have significantly reduced prices for lower-quality stones.
This has dealt a major blow to Botswana, where diamond sales account for 30–40% of government revenue, 75% of foreign exchange earnings, and about a third of the national economy.
In the first half of 2024, Botswana’s rough diamond sales plunged by 49.2%, according to the country’s central bank.
In response to declining revenues, the government has announced spending cuts on new vehicles and official travel and may delay certain capital projects.
Beyond the rise of lab-grown diamonds, sales have also been impacted by an oversupply of gems, weak demand from the key Chinese market, and inflation-stricken consumers.
As synthetic diamonds continue to dominate the market for stones priced under $750, Botswana is shifting its focus toward high-end jewelry buyers.
To appeal to luxury consumers, the country is emphasizing the traceability of its natural diamonds, ensuring they can be authenticated through blockchain technology, Kenewendo noted.
