By Mohd Edrees.
Botswana’s economic output fell sharply in the second quarter, reflecting a steep decline in output from its key diamond industry, data from the statistics agency showed on Friday.
Gross domestic product decreased 5.3% in year-on-year terms, the steepest quarterly contraction since the COVID-19 pandemic.
“Diamond production in carats declined 43.1% in the second quarter of 2025. The steep decline reflects the diamond companies continued effort to scale down operations amid sluggish global demand,” the statistics agency said in a report.
Diamonds which account for 80% of the country’s export sales and around a third of government revenue, have been the bedrock of its economy for decades.
Debswana, largest diamond miner in Botswana, has scaled back output amid diamond slump. ODC is allocated 30% of the stones produced by Debswana, a 50:50 joint venture between Botswana and diamond giant De Beers.