GABORONE, Botswana (AP) — In a village outside Botswana ’s capital, Keorapetse Koko sat on an aging couch in her sparsely furnished home, stunned that a career — and an entire nation’s economy — built on diamonds had fallen so far, so fast.
For 17 years, she had earned a living cutting and polishing the gems that helped transform Botswana from one of the world’s poorest nations into one of Africa’s success stories. Diamonds were discovered in 1967, a year after independence, an abrupt change of fortune for the landlocked country.
Botswana became the world’s top diamond producer by value, and second-largest by volume after Russia. Diamonds are woven into the national identity, with local Olympic champion runner Letsile Tebogo heading a De Beers campaign celebrating how the industry funds schools and stadiums.
The stones that Koko and thousands of others dug and polished over the decades have funded Botswana’s health, education, infrastructure and 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, joining many others left adrift as Africa’s trade in natural diamonds buckles under growing pressure from cheaper lab-grown diamonds mass-produced mainly in China and India.
“I have debts and I don’t know how I am going to pay them,” said the mother of two, who had survived on about $300 a month and relied on her employer for medical insurance. It had been a decent situation for a semi-skilled worker in a country where the average monthly salary is about $500. “Every month they call me asking for money. But where do I get it?”
‘Diamonds built our country’
Botswana, which has unearthed some of the world’s biggest stones, has prided itself on prudently managing its natural wealth, avoiding the corruption and fighting that have plagued many African peers. Its marketing message has been simple: Its stones are conflict-free and help fund development.
“Diamonds built our country,” said Joseph Tsimako, president of the Botswana Mine Workers Union, which represents about 10,000 workers in the nation of 2.5 million people. “Now, as the world changes, we must find a way to make sure they don’t destroy the lives of the people who helped build it.”
He warned that new U.S. tariffs under the Trump administration could worsen Botswana’s downturn, triggering staffing freezes, unpaid leave and more layoffs. The U.S. has imposed a 15% tariff on diamonds that are mined, cut and polished there.
Diamond exports, roughly 80% of Botswana’s foreign earnings and a third of government revenue, have tumbled.
Debswana, the largest local diamond producer and a joint venture between the government and mining giant De Beers, saw revenues halve last year. It has paused operations at some mines as Botswana and Angola enter talks to take over controlling stakes in De Beers’ diamond mining unit.
In September, Botswana’s national statistics agency reported a 43% drop in diamond output in the second quarter, the steepest fall in the country’s modern mining history. The World Bank expects the economy to shrink 3% this year, the second consecutive contraction.