In a village exterior Botswana’s capital, Keorapetse Koko sat on an getting old sofa in her sparsely furnished house, shocked {that a} profession — and a whole nation’s economic system — constructed on diamonds had fallen up to now, so quick.
For 17 years, she had earned a residing slicing and sprucing the gems that helped remodel Botswana from one of many world’s poorest nations into considered one of Africa’s success tales. Diamonds had been found in 1967, a yr after independence, an abrupt change of fortune for the landlocked nation.
Botswana grew to become the world’s prime diamond producer by worth, and second-largest by quantity after Russia. Diamonds are woven into the nationwide identification, with native Olympic champion runner Letsile Tebogo heading a De Beers marketing campaign celebrating how the trade funds colleges and stadiums.
The stones that Koko and hundreds of others dug and polished over the many years have funded Botswana’s well being, training, infrastructure and extra. The nation risked the “useful resource curse” of constructing its economic system on a single pure asset — and in contrast to many African nations, it was a hit.
However Koko misplaced her job a yr in the past, becoming a member of many others left adrift as Africa’s commerce in pure diamonds buckles underneath rising stress from cheaper lab-grown diamonds mass-produced primarily in China and India.
“I’ve money owed and I don’t know the way I’m going to pay them,” stated the mom of two, who had survived on about $300 a month and relied on her employer for medical insurance coverage. It had been an honest scenario for a semi-skilled employee in a rustic the place the typical month-to-month wage is about $500. “Each month they name me asking for cash. However the place do I get it?”
‘Diamonds constructed our nation’
Botswana, which has unearthed a number of the world’s greatest stones, has prided itself on prudently managing its pure wealth, avoiding the corruption and combating which have plagued many African friends. Its advertising and marketing message has been easy: Its stones are conflict-free and assist fund growth.
“Diamonds constructed our nation,” stated Joseph Tsimako, president of the Botswana Mine Staff Union, which represents about 10,000 employees within the nation of two.5 million folks. “Now, because the world adjustments, we should discover a method to ensure they don’t destroy the lives of the individuals who helped construct it.”
He warned that new U.S. tariffs underneath the Trump administration might worsen Botswana’s downturn, triggering staffing freezes, unpaid go away and extra layoffs. The U.S. has imposed a 15% tariff on diamonds which might be mined, reduce and polished there.
Diamond exports, roughly 80% of Botswana’s international earnings and a 3rd of presidency income, have tumbled.
Debswana, the most important native diamond producer and a three way partnership between the federal government and mining big De Beers, noticed revenues halve final yr. It has paused operations at some mines as Botswana and Angola enter talks to take over controlling stakes in De Beers’ diamond mining unit.
In September, Botswana’s nationwide statistics company reported a 43% drop in diamond output within the second quarter, the steepest fall within the nation’s trendy mining historical past. The World Financial institution expects the economic system to shrink 3% this yr, the second consecutive contraction.
The rise of artificial diamonds
The worldwide rise of artificial diamonds has been swift. They’ve “given stiff competitors, particularly in lower-quality stones,” stated Siddarth Gothi, chairman of the Botswana Diamond Producers Affiliation.
The gems emerged within the Nineteen Fifties for industrial use. By the Seventies they’d reached jewellery high quality. Lab-grown stones now promote for as much as 80% lower than pure diamonds. As soon as making up simply 1% of world gross sales in 2015, they’ve surged to just about 20%.
Glitzy social media movies have fueled the enchantment of artificial gems made in weeks underneath intense warmth and stress and marketed as cheaper, conflict-free and eco-friendly options to stones fashioned over billions of years.
Environmental teams have stated pure diamond mining can drive deforestation, destroy habitats, degrade the soil and pollute the water. However environmental claims in regards to the artificial gems additionally face scrutiny, with critics noting that manufacturing stays energy-intensive, usually powered by fossil fuels.
From “a marginal phenomenon,” an “unprecedented flood” of synthetics now threatens the pure diamond’s worth and future, World Federation of Diamond Bourses president Yoram Dvash warned in July.
Lab-grown stones now account for many new U.S. engagement rings, he stated. Pure diamond costs have fallen roughly 30% since 2022, leaving the trade at what Dvash known as “a essential juncture.”
Hollywood stars, together with Billie Eilish and Pamela Anderson, and Bollywood celebrities have boosted artificial diamonds’ attract, together with Gen Z influencers.
“The brand new era of children getting engaged, they’ve obtained way more vital issues to spend their cash on than a diamond,” stated Ian Furman, founding father of Naturally Diamonds, which sells pure and artificial diamonds in neighboring South Africa. “So, it’s develop into so enticing to them to purchase lab diamonds.”
Furman stated that for each 100 diamonds his firm sells, round 95 are artificial when simply 5 or 6 years in the past it was overwhelmingly pure diamonds.
African producers really feel the ache
The shift is felt past Botswana. Throughout southern Africa, falling manufacturing of pure diamonds and income have led to job cuts and monetary pressure.
To counter the pattern, Botswana, Angola, Namibia, South Africa and Congo in June agreed to pool 1% of annual diamond revenues, translating into hundreds of thousands of {dollars}, into a world advertising and marketing push led by the Pure Diamond Council to advertise pure stones. The nonprofit’s members embrace main mining firms reminiscent of De Beers Group and Rio Tinto, which have invested closely in pure diamonds.
Final yr, the council launched a “Actual. Uncommon. Accountable” marketing campaign starring actor Lily James in a bid to recast pure diamonds as distinctive and ethically sourced.
Kristina Buckley Kayel, the council’s managing director for North America, stated restoring pure diamonds’ “desirability” is important to guard producer economies, notably in southern Africa.
With its diamond earnings not assured, Botswana’s authorities in September created a sovereign wealth fund targeted on funding and diversification past mining, though particulars about its worth and traders sketchy. Instantly, the nation’s elephant-heavy tourism trade and different mining choices, together with gold, silver and uranium, are extra vital than ever.
However for Koko, the laid-off diamond employee, the coverage shift might have come too late.
“I used to be the breadwinner in a giant household,” she stated. “Now I don’t even know easy methods to feed my very own. On the lookout for one other job may be very tough. The abilities I discovered are solely related to the diamond trade.”
She by no means owned a diamond herself. Even the smallest could be a luxurious past her means.
