Botswana’s economy, once buoyed by flourishing diamond mining, faces a sharp downturn amidst a growing market trend favoring synthetic diamonds. This shift has left thousands jobless, including Keorapetse Koko, a local diamond worker who, after 17 years in the industry, now struggles to make ends meet.
Diamonds: Botswana’s Economic Bedrock
After their discovery in 1967, diamonds rapidly transformed Botswana from one of the world’s poorest nations into an African success story. The country became the world’s top diamond producer by value, and the second-largest by volume after Russia. These gems were so integral to Botswana’s growth that they became woven into the national identity.
Local Olympic champion runner, Letsile Tebogo, even led a De Beers campaign celebrating how the diamond industry funded local infrastructure, health, and educational initiatives. The gems that workers like Koko dug and polished over the years have funded Botswana’s health, education, infrastructure, and more.
The Impact of Synthetic Diamonds
However, the rise of cheaper lab-grown diamonds, predominantly from China and India, has put Africa’s trade in natural diamonds under immense strain. This shift has left many, including Koko, unemployed and struggling financially.
Synthetic diamonds have given stiff competition, especially in lower-quality stones,” said Siddarth Gothi, chairman of the Botswana Diamond Manufacturers Association. These lab-grown stones, now accounting for nearly 20% of global sales, are marketed as cheaper, conflict-free, and eco-friendly alternatives to natural diamonds.
Even Hollywood stars, including Billie Eilish and Pamela Anderson, and Bollywood celebrities have boosted synthetic diamonds’ allure, along with Gen Z influencers.
Countering the Trend
To counteract this trend, countries like Botswana, Angola, Namibia, South Africa, and Congo have agreed to pool 1% of their annual diamond revenues for a global marketing push promoting natural stones. This campaign is led by the Natural Diamond Council, whose members include major mining companies such as De Beers Group and Rio Tinto.
Last year, the council launched a “Real. Rare. Responsible” campaign starring actor Lily James in a bid to recast natural diamonds as unique and ethically sourced.
Future of Botswana’s Economy
With its diamond income no longer assured, Botswana’s government in September created a sovereign wealth fund focused on investment and diversification beyond mining. The country’s elephant-heavy tourism industry and other mining options, including gold, silver, and uranium, are now more important than ever.
However, for laid-off diamond workers like Koko, these policy shifts may have come too late. The skills she has honed over 17 years are only relevant to the diamond industry, leaving her and many others in a precarious situation.
“I was the breadwinner in a big family,” she said. “Now I don’t even know how to feed my own. Looking for another job is very difficult. The skills I learned are only relevant to the diamond industry.”
In this ever-evolving world market, the future of Botswana’s economy and its people remains uncertain, highlighting the pressing need for diversification and re-skilling programs to ensure a sustainable future for all.
