Okavango Diamond Company leans on contract buyers as Botswana market cools

Okavango Diamond Company, the Botswana state-owned rough diamond seller, said in February 2026 that it planned to increase the share of stones it sells to buyers on fixed-term contracts, a shift aimed at giving it more predictable revenue as the broader market for rough diamonds remains depressed.

The company sold about three million carats in 2025 out of an allocation of just over four million carats from Debswana, and expects 2026 sales to run at a similar level, in line with its allocation from the Debswana joint venture between the Botswana government and De Beers. Rather than relying solely on open tenders, where buyer interest and prices can swing sharply from sale to sale, Okavango is betting that longer-term contractual relationships with a smaller pool of trusted buyers will provide steadier cash flow through a period of weak demand.

A smaller but strategic seller

Okavango was established to give the Botswana government direct access to rough diamond sales outside De Beers's own marketing channel, generating revenue and market intelligence independent of its 50-50 partner in Debswana. Its pivot toward contract sales mirrors similar defensive tactics adopted elsewhere in the industry, including Petra Diamonds's move away from scheduled tender cycles in South Africa and De Beers's own more selective, discounted sight sales.

Part of a wider defensive posture

The shift came just days after De Beers itself cut 2026 production guidance and around the same time Botswana's government was moving to redirect exploration spending away from diamonds altogether — evidence of a coordinated, if informal, effort across the country's diamond institutions to manage a downturn that shows no sign of ending quickly. With Debswana's own stockpile swollen and prices still soft, giving buyers the certainty of a multi-year contract, rather than competing for goods only at tender, may prove an easier way to keep revenue flowing into government coffers.

Looking ahead

Okavango's approach will be tested through 2026 as global demand for natural diamonds continues to face pressure from lab-grown competition. If contract buyers prove willing to commit to volumes even in a soft market, the strategy could offer a template other African state sellers, from Angola's Endiama to Namibia's institutions, might look to copy.

Sources

• CNBC Africa: Botswana's state-owned diamond company turns to contract sales to manage tough market, 11 Feb 2026

Photo: Rough diamonds on display in Gaborone, Botswana, hub of the country's state diamond sales institutions. Vice President's Secretariat, Wikimedia Commons, GODL-India.