In a village outside Gaborone, Botswana, Keorapetse Koko reflects on the profound impact of a declining diamond industry that once transformed her nation’s economy. For 17 years, Koko was employed in cutting and polishing diamonds, contributing to Botswana's evolution from one of the world’s poorest nations to one of Africa's success stories following the discovery of diamonds in 1967, just after gaining independence.
Botswana rose to become the world’s top diamond producer by value and the second largest by volume, only behind Russia. Diamonds have become woven into the nation’s identity, with local athletes like Olympic champion Letsile Tebogo involved in promotional campaigns that highlight how the diamond industry funds essential services like education and health.
However, the rapid emergence of cheaper lab-grown diamonds, primarily produced in China and India, has severely impacted Botswana’s diamond trade. Koko, like many others affected, lost her job a year ago and is now struggling to manage mounting debts. Previously subsisting on about $300 a month, Koko relied on her job for financial stability and medical insurance. "Every month they call me asking for money. But where do I get it?" she lamented.
Botswana has historically managed its diamond resources wisely, avoiding the corruption and conflicts that have marred many African nations. "Diamonds built our country," stated Joseph Tsimako, president of the Botswana Mine Workers Union, which represents around 10,000 workers in a country of 2.5 million people. He emphasized the need for strategies to protect the livelihoods of those who contributed to this national prosperity as global dynamics shift.
The economic downturn is further exacerbated by new U.S. tariffs imposed during the Trump administration, which levied a 15% tariff on diamonds mined, cut, and polished in Botswana. Such tariffs have led to a dramatic decline in diamond exports, which constitute about 80% of Botswana’s foreign earnings and a third of its government revenue. Debswana, the largest diamond producer in the country, reported a 50% reduction in revenues last year and has halted operations in some mines amid ongoing negotiations to secure controlling stakes in its diamond mining unit from De Beers.
Statistics released in September indicated a startling 43% drop in diamond output in the second quarter, marking the steepest decline in the nation’s mining history. The World Bank has projected a 3% shrinkage of the economy for this year, marking two consecutive years of economic contraction.
The rise of synthetic diamonds has significantly disrupted the natural diamond market. Siddarth Gothi, chairman of the Botswana Diamond Manufacturers Association, pointed out that lab-grown diamonds have taken a substantial market share, especially in the lower-quality segment. Initially developed for industrial applications in the 1950s, these stones have improved in quality over decades and now can be sold at up to 80% less than their natural counterparts.
As the popularity of synthetic diamonds surges—rising from merely 1% of global sales in 2015 to nearly 20%—the unique value of natural diamonds faces a critical threat. Celebrities and influencers promoting lab-grown diamonds, along with environmental concerns associated with natural diamond mining, have further marginalized the traditional diamond market.
The repercussions of this shift extend beyond Botswana, affecting natural diamond production and employment throughout southern Africa. To counter the decline, Botswana, Angola, Namibia, South Africa, and Congo have initiated a collaborative effort to allocate 1% of their diamond revenue toward a global marketing campaign to promote natural diamonds as unique and ethically sourced products.
Recently, the Botswana government established a sovereign wealth fund aimed at diversifying the economy away from dependence on diamond mining as the future of this sector becomes increasingly uncertain. As the country looks to strengthen its tourism industry, which is rich in wildlife, and explore other mining ventures for resources like gold and uranium, the transition may come too late for many former diamond workers.
Koko poignantly stated, "I was the breadwinner in a big family. Now I don’t even know how to feed my own." Despite her long experience in the diamond industry, Koko faces the daunting challenge of finding new employment, as her skills remain primarily aligned with the diamond trade. She has never owned a diamond herself, highlighting the stark contrast between the wealth generated by the industry and the everyday struggles of its workers.
