23 January 2026
Botswana is resigned to a prolonged period of weak diamond prices with serious implications for the budget of the southern African nation, where the gems are a vital source of income. The Finance Ministry warned that mineral revenues could end the 2025-2026 financial year at just 10.3 billion pula ($744 million), less than half of the 25.3 billion pula historic average.
“The recovery in mineral revenue is expected to be prolonged,” it wrote in a strategy paper ahead of the annual budget next month. “The shortfall is likely to persist over the medium to long-term with the possibility of non-recovery.”
De Beers on Monday announced it was cutting diamond prices for the first time since late 2024, bowing to slumping demand as Chinese luxury spending retreats, the popularity of synthetic stones rises and US tariffs hit India, the world’s largest diamond exporter.
The Finance Ministry said rough diamonds were expected to sell at $99.3 per carat at the end of 2025 compared with $128.8 in 2024, extending pressure on Botswana’s public finances.
“In the context of elevated macro-fiscal pressures, government will prioritise restoring fiscal sustainability by strengthening expenditure discipline,” the paper said, noting the budget deficit was projected to narrow to 3.3% of gross domestic product in 2025/26 from 4.2% for 2024/25.
Source: https://shorturl.at/pmtv9
