Okavango Diamond Company to Launch Contract Diamond Sales in November as Botswana Diversifies Marketing Channels
Botswana’s state-owned Okavango Diamond Company (ODC) will begin selling diamonds to contracted buyers next month as part of its strategy to diversify sales channels under the government’s new 10-year agreement with De Beers, Managing Director Mmetla Masire announced on Wednesday.
Under the revised deal, signed in February 2025, ODC’s allocation from Debswana—a 50:50 joint venture between the Botswana government and De Beers—was increased to 30% of total production, up from 25%. The allocation is expected to rise to 40% by the end of the agreement.
A restrictive clause in the previous contract that prevented ODC from directly competing with De Beers on contract sales has now been removed, granting the state-owned firm more flexibility in how it markets Botswana’s diamonds.
“We are targeting our first sales through this channel in November, with the first two being pilot sales before we go full scale on the third,” Masire said during a mining conference.
Challenging Market Conditions
Masire told Reuters earlier this year that ODC aims to sell about 40% of its supply through contract sales, while the remainder will continue to be marketed via auctions, strategic partnerships, and Botswana-based companies.
However, the global diamond industry remains under pressure, with weak demand, a supply glut, and the rising popularity of lab-grown diamonds weighing heavily on rough diamond prices.
In 2023, ODC temporarily suspended rough diamond sales to help stabilize the market as part of an industry-wide effort to manage oversupply.
The company resumed auctions on September 25, 2024, but ultimately withheld its gems, citing market conditions that could have triggered a significant price decline.
Masire revealed that ODC’s revenues in 2024 fell to about 60% of the previous year’s levels due to the downturn, though he noted signs of stabilization in recent months.
The company’s last three auctions delivered modest positive margins, a marked improvement from the double-digit losses recorded in 2023.
Economic Impact on Botswana
Botswana, one of the world’s leading diamond producers, remains highly dependent on diamond exports, which account for 30% of government revenues and nearly 75% of foreign exchange earnings.
The ongoing market slump has taken a toll on the broader economy, which contracted by 3% in 2024, according to official data.
The International Monetary Fund (IMF) has forecast a further 1% contraction in 2025, reflecting the sustained challenges in the global diamond trade.
Despite these headwinds, ODC’s upcoming contract sales mark a significant shift in Botswana’s diamond marketing strategy, aimed at enhancing revenue stability, market reach, and long-term value creation in one of the country’s most critical industries.
