Botswana Diamond Slump Threatens Miners Livelihoods and Survival

Botswana’s Diamond Industry Faces Strain as Global Demand Weakens

A year ago, Motshwegwa Rakhudu lost his job at Debswana diamond mining operations in northern Botswana after 14 years of service. He had been on rolling three-year renewable contracts with Enabler Hires (Pty) Ltd, which he expected to continue until 2027. Instead, he was retrenched and made redundant without warning.

Rakhudu took a loan of 26,000 pula ($1,900) in early 2025 to buy a car, believing his job was secure. However, by mid-May, he was out of work. He is now struggling with debt and household responsibilities, including school fees, without receiving any compensation.

The sudden retrenchment has left Rakhudu and many others in the diamond industry uncertain about their future. The Botswana Mineworkers Union’s General Secretary, Mbiganyi Gaekgotswe, notes that the impact of the global diamond downturn is no longer just a business issue but a human issue affecting workers, families, and entire mining communities.

The diamond sector, which accounts for 90% of Botswana’s diamond sales, has slowed sharply. Debswana Diamond Company cut production by about 27% in 2024 to 17.9 million carats amid weak global demand. The company plans further reductions to around 15 million carats in 2025.

The slowdown has rippled through the wider economy, with Botswana’s output contracting by about 5.3% in the second quarter of 2025. Diamonds account for around 70% of export earnings and roughly a third of government revenue. The country’s sovereign credit rating was downgraded to BBB- in 2025 due to sustained pressure from the global diamond downturn.

Many workers are now facing uncertainty about their jobs, with some being shifted onto short-term agreements. Dominic Obusitse Mapoka, Chairperson of the Botswana Diamond Workers Union, notes that workers who remain employed are increasingly on short-term or temporary contracts, making it difficult for families to plan due to the lack of job security.

The impact of the diamond downturn is also affecting contractors and service providers, with restructuring already filtering through. The cost of living continues to increase, with knock-on effects for small businesses tied to mining activity.

Source: Al Jazeera