Botswana’s ODC will begin selling diamonds under contracts in September

Managing director Mmetla Masire announced on Friday that Botswana’s state-owned Okavango Diamond Company, which is expanding its sales channels under the government’s new marketing agreement with De Beers, intends to begin contracted gem sales in September.

The new agreement increased ODC’s production share in Debswana, its 50/50 joint venture with De Beers, from 25% to 30%. ODC plans to sell roughly 40% of its supply through contracts, with the remaining portion being sold through auctions, strategic partners, and Botswana-based businesses.

At the moment, ODC sells most of its goods through online auctions, which are usually held ten times a year. Similar to De Beers, which contracts with hand-selected customers, commonly known as sightholders, to sell over 90% of its diamonds, ODC will now do the same.

In an interview with Reuters, Masire stated, “There was a provision in the previous agreement that prohibited us from directly competing with De Beers on contract sales.”

Contracts should be issued by September, he noted, and the buyer selection process has begun.

ODC’s share of Debswana output will reach 40% at the conclusion of the new ten-year agreement with De Beers, which was inked in February. With a proposed five-year extension period, this percentage might rise to 50%.

Masire stated that there were indications of “a slow but sustained recovery” despite the fact that the global diamond industry is now experiencing a downturn characterized by a glut of supply and diminishing demand.

Masire stated, “The global market is still fragile, and the U.S. tariffs have added uncertainty, but indications are that demand is improving as China and India look like they’re starting to pick up.”

As a result of the downturn, ODC’s 2024 revenues were roughly 60% of those of the prior year.