Botswana's Diamond Stockpile Hits 12m Carats

(IDEX Online) - Botswana is stockpiling almost twice as many diamonds as the limit set by its government.

It has accumulated 12m unsold carats because it cannot sell its rough at a fair price amid ongoing weak demand. The government's allowable inventory level is 6.5m carats.

In its 2026/27 Budget Strategy Paper, the Finance Ministry said that over the short term, production is expected to remain broadly unchanged until inventories are drawn down closer to minimum allowable levels, creating room for additional production.

"The recent slowdown in the non-diamond sector underscores the substantial footprint of Government in the economy and highlights the private sector's continued reliance on public sector demand and support," it said.

The ministry also said the high inventory levels underscore the urgency of Botswana diversifying its economy beyond diamonds, which account for roughly 80 per cent of the country's exports and up to 30 per cent of its GDP.

The country's diamond production declined by 3.2 per cent in the first nine months of 2025 to 13.3m carats.

Pic shows the Jwaneng diamond mine, Botswana.