Botswana diamond slump leaves workers stranded as global demand dries up

Orapa, Botswana – For more than a year now, Motshwegwa Rakhudu (name changed) has been unemployed after 14 years as a fitter at the Debswana diamond mine in northern Botswana. He had a three-year contract with Enabler Hires (Pty) Ltd and believed the job would last until 2027. But without warning, he was fired.

“The shock was enormous,” Rakhudu told Al Jazeera. “In early 2025, I borrowed 26,000 pula (about $1,900) to buy a car because I thought my job was secure. By mid-May, I was out of work.” He said the sudden job loss left him grappling with debt, family responsibilities, and school fees for his children, with no compensation. “Being caught unprepared is very difficult. Jobs are scarce, and even when you find work outside mining, the pay is much lower.”

Rakhudu has considered farming or starting a small business but lacks capital. Selling the car only covered the remaining loan.

When contacted by Al Jazeera, Enabler Hires senior manager Gaotlhobogwe Radikwata declined to comment: “I will not answer your questions even if you convince me you are from Al Jazeera. Who gave you my number? I am not authorized to share information.”

Jobs vanish as diamond output slows

The layoffs come as Botswana's diamond industry – the backbone of the economy – suffers a sharp downturn. Debswana Diamond Company, a joint venture between the government and De Beers, cut output by about 27% in 2024 to 17.9 million carats due to weak global demand, and expects further cuts to about 15 million carats in 2025. The company accounts for roughly 90% of Botswana's diamond sales.

The slowdown has rippled through the entire economy. Botswana's output contracted by about 5.3% in the second quarter of 2025, the steepest decline since the pandemic, driven mainly by falling diamond production, according to Reuters. Diamonds account for about 70% of export earnings and roughly a third of government revenue, according to Reuters and S&P Global Ratings. The rating agency downgraded Botswana's sovereign credit rating to BBB- in 2025, citing prolonged pressure from the global diamond downturn and weakening fiscal revenues.

Pressure mounts in mining communities

For workers, the impact is no longer abstract. “The diamond downturn is no longer just a business issue. It is a human issue, affecting workers, families, contractors, and entire mining communities,” said Mbiganyi Gaekgotswe, general secretary of the Botswana Mine Workers Union. According to him, uncertainty has become a daily reality. “The first question on everyone's mind is whether they will still have a job next year. Will contracts be renewed? Will overtime be cut? These things affect school fees, loans, medical bills, and family responsibilities.”

Even those who still have jobs feel the pressure as wages stagnate while food and transport costs rise.

Searching for new growth beyond diamonds

Dominic Obusitse Mapoka, president of the Botswana Diamond Workers Union, said restructuring has spread to contractors and service providers, with many workers shifted to short-term contracts. “Workers who still have jobs are increasingly on short-term or temporary contracts. This makes it hard for families to plan because they don't know if contracts will be renewed.” He said many earn between $190 and $250 per month, while living costs continue to rise, creating a knock-on effect on small businesses reliant on mining activity.

Since independence in 1966, diamonds have transformed Botswana from one of the world's poorest countries into a middle-income economy, funding infrastructure, public services, and sustainable growth. But that success has also left the country vulnerable to global shocks. The industry is now under pressure from weak demand, competition from synthetic diamonds, and a decline in luxury spending in key markets, according to S&P Global Ratings.

Levy Ndou, a political scientist at Tshwane University of Technology, said the downturn exposes the risks of economic concentration. “When people rely heavily on one industry, a drop in global demand becomes very devastating.” He called for faster diversification into agriculture and beef production, along with stronger regional trade links.

Botswana's Minister of Labour and Home Affairs, Pius Mokgware, said the government is responding by trying to absorb job losses, including expanding copper mining and new projects. He also said diversification efforts are targeting agriculture, tourism, and information and communications technology. Minister of Minerals and Energy, Bogolo Joy Kenewendo, did not respond to repeated requests for comment.

Tshepo Modibedi, president of the Botswana Small-Scale Miners Association, said small operators remain locked out of the diamond value chain, which is dominated by big companies. Although not directly involved in diamonds, the downturn still affects households nationwide. “Synthetic diamonds and strict regulations are challenges, but they could also be opportunities if policies become more inclusive,” he said.

For Rakhudu, structural changes in the global diamond market remain distant from his daily life. “I am still looking for a job,” he said. “I just want another chance to work.”