By
Bloomberg
Published
October 7, 2025
Botswana said an unprecedented ad-hoc diamond auction late last month — in which it didn’t sell any gems because the reserve price wasn’t met — wasn’t an “emergency sale.”
State trader Okavango Diamond Co. had offered about 1 million carats of rough stones in a “closed” tender on Sept. 25. Bloomberg reported at the time that the aim had been to raise revenue for the government, whose economy has suffered from a slump in the global gem market.
The diamond world is grappling with one of its worst downturns in decades, amid a drop in Chinese demand and strong competition from lab-grown stones, while US tariffs have sown further uncertainty. Botswana is particularly feeling the pinch — diamonds account for about 80% of its export sales and around a third of government revenue.
On Monday, ODC said the auction wasn’t an emergency sale and was planned in advance. While it said that 95% of the companies registered for the tender submitted competitive bids, it made a “deliberate and prudent decision to withhold certain goods.”
“Withholding goods in the short term ensures better outcomes for the market,” ODC Managing Director Mmetla Masire said in a statement.
“We will not join the race to the bottom on prices, our focus is on protecting the integrity and enduring value of Botswana’s diamonds.”
