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Keorapets size Sitting on an old sofa in her sparsely furnished home, she was stunned that a career built on diamonds – and an entire country’s economy – had fallen apart so rapidly.
For 17 years, he earned a living by cutting and polishing gemstones, helping to transform Botswana from one of the world’s poorest countries into one of Africa’s success stories. diamonds They were discovered in 1967, a year after independence, marking a sudden change in the fortunes of the landlocked country.
Botswana became the world’s top diamond producer by value, and the second largest after Russia by volume. Diamonds are woven into national identity with local Olympic champion sprinter letsile tebogo De Beers is leading the campaign celebrating how the industry funds schools and stadiums.
The stones that Koko and thousands of others have dug and polished over decades have funded Botswana’s health, education, infrastructure and much more. The country risked the “resource curse” of building its economy on a single natural asset – and unlike many African Nations, it was a success.
But Koko lost her job a year ago, and along with many others, went astray as Africa’s trade in natural diamonds slowed due to increasing pressure from cheap, mass-produced lab-grown diamonds, primarily in China and India.
“I have debt and I don’t know how I’m going to pay it off,” said the mother of two, who lived on about $300 a month and depended on her employer for medical insurance. This was a good situation for a semi-skilled worker in a country where the average monthly wage is about $500. “Every month they call me and ask for money. But where do I get it?”
‘Heroes built our country’
Botswana, which has unearthed some of the world’s largest boulders, has prided itself on managing its natural wealth judiciously, avoiding the corruption and fighting that has plagued many African peers. Its marketing message is simple: its stones are conflict-free and aid growth.
“Diamonds built our country,” said Joseph Tsimako, president of the Botswana Mine Workers Union, which represents about 10,000 workers in the country of 2.5 million people. “Now, as the world changes, we have to find a way to ensure they don’t destroy the lives of the people who helped create it.”
He warned that new US tariffs under the Trump administration could worsen Botswana’s recession, leading to workforce reductions, unpaid leave and more layoffs. The US has imposed a 15% tariff on diamonds mined, cut and polished there.
Diamond exports, which account for about 80% of Botswana’s foreign earnings and a third of government revenue, have fallen.
Revenue at Debswana, the largest local diamond producer and a joint venture between the government and mining giant De Beers, halved last year. It has halted operations at some mines as Botswana and Angola negotiate to take a controlling stake in De Beers’ diamond mining unit.
In September, Botswana’s national statistics agency reported a 43% decline in diamond production in the second quarter, the largest decline in the country’s modern mining history. The World Bank expects the economy to shrink by 3% this year, the second consecutive decline.
The rise of artificial diamonds
The global rise of synthetic diamonds has been rapid. “They have given stiff competition, especially in lower quality stones,” said Siddartha Gothi, president of the Botswana Diamond Manufacturers Association.
Gemstones emerged for industrial use in the 1950s. By the 1970s they had reached jewelery quality. Lab-grown stones now sell for 80% less than natural diamonds. After once making up only 1% of global sales in 2015, this has grown to nearly 20%.
Glitzy social media videos have boosted the appeal of synthetic gems created in weeks under intense heat and pressure and marketed as a cheap, conflict-free and eco-friendly alternative to stones formed over billions of years.
Environmental groups have said that mining of natural diamonds can lead to deforestation, habitat destruction, soil degradation and water pollution. But environmental claims about synthetic gems also face scrutiny, with critics saying production remains energy-intensive, often powered by fossil fuels.
Yoram Dvash, president of the World Federation of Diamond Bourses, warned in July that from “a marginal phenomenon”, an “unprecedented flood” of synthetics now threatens the value and future of natural diamonds.
Lab-grown stones now account for the majority of new American engagement rings, he said. Natural diamond prices have fallen by nearly 30% since 2022, putting the industry at what Dove called “a turning point.”
Hollywood stars and Bollywood celebrities including Billie Eilish and Pamela Anderson have fueled the allure of synthetic diamonds with Gen Z influencers.
“The new generation of young people are engaged, they have more important things to spend their money on than diamonds,” said Ian Fuhrman, founder of Naturally Diamonds, a company that sells natural and synthetic diamonds in neighboring South Africa. “So, it has become very attractive for them to buy lab diamonds.”
Furman said that out of every 100 diamonds his company sells, about 95 are synthetic diamonds, whereas just five or six years ago it was mostly natural diamonds.
African producers feel the pain
This change is being felt beyond Botswana. Throughout Southern Africa, declining natural diamond production and revenues have led to job cuts and financial stress.
To counter this trend, in June Botswana, Angola, Namibia, South Africa and Congo agreed to pool 1% of annual diamond revenues, which translates into millions of dollars, into a global marketing campaign led by the Natural Diamond Council to promote the natural stones. The nonprofit’s members include major mining companies such as De Beers Group and Rio Tinto, which have invested heavily in natural diamonds.
Last year, the council launched a “Real. Rare. Responsible” campaign starring actor Lily James in an effort to make natural diamonds unique and ethically sourced.
Christina Buckley Quayle, the council’s managing director for North America, said it is essential to restore the “desirability” of natural diamonds to protect productive economies, particularly in Southern Africa.
With its diamond income no longer assured, Botswana’s government in September created a sovereign wealth fund focused on investment and diversification beyond mining, although details about its value and investors are sketchy. Suddenly, the country’s elephant-heavy tourism industry and other mining options, including gold, silver and uranium, have become more important than ever.
But for Koko, the laid-off diamond worker, the policy change may have come too late.
“I was the breadwinner in a big family,” she said. “Now I don’t even know how to make ends meet. It’s very difficult to find another job. The skills I’ve learned are only relevant to the diamond industry.”
He never owned any diamonds himself. Even the smallest thing would be a luxury beyond his ability.
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Mutsaka reported from Harare, Zimbabwe. Associated Press writer Mogomotsi Magome in Johannesburg, South Africa, contributed to this report.
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