Debswana

Stock performance

History

Debswana was formed in 1969 as a joint venture between the newly independent government of Botswana and South Africa's De Beers, shortly after diamonds were discovered at Orapa. It later opened Jwaneng in 1982, often described as the richest diamond mine in the world by value, and the partnership is now owned 50-50 by the government and De Beers.

Business model

Debswana mines rough diamonds at Jwaneng and Orapa and sells them to De Beers and to the state-owned Okavango Diamond Company. A new sales agreement struck in 2023 gives Botswana's own company a steadily rising share of production, increasing the country's direct control over the marketing of its diamonds.

Market position

Debswana is one of the world's largest diamond producers by value and the core of De Beers' supply.

Country impact

Diamonds account for the large majority of Botswana's exports and a large share of government revenue, so Debswana's output is decisive for the economy; the slump in diamond demand since 2023, linked to lab-grown stones and weak Chinese demand, forced production cuts and hit Botswana's growth and public finances hard.