Diamond Slump Hits its Economy. Botswana Seeks a New Sales Route in Dubai
Botswana wants to expand direct access to Dubai's diamond trading hub. The country hopes to strengthen exports as weak demand weighs on its economy. The success of the plan will depend on turning agreements into regular sales. Botswana steps up efforts to channel more of its diamonds through Dubai as. . .
Botswana wants to expand direct access to Dubai's diamond trading hub. The country hopes to strengthen exports as weak demand weighs on its economy. The success of the plan will depend on turning agreements into regular sales. Botswana steps up efforts to channel more of its diamonds through Dubai as it looks for new buyers in a global market still struggling with weak demand and lower prices. Nearly four years after launching an initial partnership, Botswana and the Dubai Multi Commodities Centre (DMCC) announced a new phase of cooperation on Wednesday, July 15. The agreement is designed to strengthen the presence of Botswana's diamonds on the UAE-based trading platform while expanding the country's access to international buyers. The announcement came during the 41st World Diamond Congress, where Botswana and the DMCC signed a memorandum of understanding. The agreement aims to connect the Botswana Mercantile Exchange (BMX) with Dubai's commercial and financial ecosystem. While the partnership also covers other Botswana exports, including copper, coal, soda ash, critical minerals, beef, and agricultural products, rough diamonds will be the first priority. The partnership will rely on competitive tenders, allowing ODC to offer parcels of rough diamonds to buyers registered on the DDE platform. The first sales are expected before the end of 2026. ODC is responsible for marketing 30% of the diamonds produced by Debswana, the joint venture between the Botswana government and De Beers that is the country's largest diamond producer. If successful, the initiative could revive cooperation that began in 2022, when ODC and the DMCC signed a similar agreement to organize auctions and promotional events for Botswana diamonds in Dubai. Since then, however, there has been no public indication that those plans translated into large-scale commercial activity. The latest agreement also remains a memorandum of understanding, meaning its success will ultimately depend on whether it leads to sustained sales and a lasting integration of Botswana into the DMCC trading network. For Botswana, turning that ambition into reality has become increasingly important. Diamonds account for nearly 70% of the country's exports, making the economy highly exposed to the prolonged downturn in the global diamond market. Weak demand and falling prices since 2022 have reduced production and sales, contributing to economic contractions of 2. 8% in 2024 and 0. 9% in 2025. Dubai's growing role in the global diamond trade helps explain Botswana's interest. Alongside traditional centers such as Antwerp, the emirate has emerged as one of the industry's leading trading hubs. According to the DMCC, Dubai recorded a record $41. 7 billion in diamond trade and 359. 5 million carats in 2025. The organization says the total value of diamonds traded through Dubai has increased by 139% since 2020, while volumes have doubled, reinforcing the city's position as a key link between producing countries, processing centers, and consumer markets. Beyond finding another export outlet, Botswana also wants greater control over how its diamonds reach global markets. Until now, access to major international trading hubs has largely depended on the commercial networks of mining companies operating in the country, particularly De Beers, which already has an established global marketing system. If the partnership delivers regular trading activity, ODC's presence on the Dubai Diamond Exchange could give Botswana a more direct route to international buyers. Even so, the company will have to compete with rough diamonds from other producing countries already using Dubai as a major trading platform. In a market where demand remains fragile, simply gaining access to Dubai will not be enough. The real challenge will be securing competitive prices in an increasingly crowded global marketplace. Aurel Sèdjro Houenou