Political situation in Botswana

Diamond shift crushes Botswana's success story

The boom in lab-grown diamonds has hit Botswana's economy hard, Bloomberg reports. Government revenues have fallen sharply. This has led to cuts in healthcare, unemployment in the construction sector and student protests.

- This is no longer just an economic challenge. It is a national social existential threat, President Duma Boko stated in August.

Analysts are now warning that diamond prices may have fallen for good, unlike oil prices, which often recover. Botswana, which has been seen as a success story in Africa, risks becoming a reminder of what one-sided dependence on raw materials can lead to, the news agency writes.

State coffers are running low: "Eight hours for medicine"

When Botswana's diamond revenues run low, ordinary people are hit hard. Long lines have become commonplace at the country’s health clinics, writes Bloomberg.

“We are waiting up to eight hours for medicine that used to take an hour to get,” says taxi driver Galeemiswe Mosheti, who has diabetes.

The construction sector is also bleeding. Thousands of workers have been laid off when government projects have been halted.

“Most of our members have been forced to cut staff,” says Tshotlego Kagiso of Botswana’s largest construction employers’ association.

The country has relied for decades on income from naturally occurring diamonds. Now the economy is in free fall as lab-grown diamonds take an increasing share of the global market.