Botswana's Diamond Downturn: A New Era

Botswanas Diamond Dilemma: A Nations Fortunes at StakeBotswana, once an African success story built on diamonds, is now grappling with a significant economic downturn. Keorapetse Koko, a former diamond cutter and polisher, lost her job a year ago, joining many others impacted by the growing pressure from cheaper, lab-grown diamonds.Diamonds, discovered in Botswana just a year after its independence, transformed the landlocked country into the worlds top diamond producer by value. These stones funded Botswanas health, education, and infrastructure, helping it avoid the resource curse that has affected many other nations.However, the rise of synthetic diamonds, mainly produced in China and India, is now threatening this industry. Lab-grown diamonds, which emerged for industrial use in the 1950s and reached jewelry quality by the 1970s, now sell for up to eighty percent less than natural diamonds. They have grown from just one percent of global sales in 2015 to nearly twenty percent today.Diamond exports, which account for roughly eighty percent of Botswanas foreign earnings, have tumbled. Debswana, the largest local diamond producer, saw its revenues halve last year and has paused operations at some mines. The World Bank expects Botswanas economy to shrink by three percent this year, marking a second consecutive contraction.This shift has created a critical juncture for the natural diamond industry. Many young people are now choosing lab-grown diamonds for engagement rings, seeing them as a more affordable, conflict-free, and eco-friendly alternative.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.