Why is Botswana ditching diamonds for beef?

In the global economic arena, Botswana is known for one thing: diamonds. The precious stones have been the backbone of the landlocked southern African nation’s economy for decades since vast deposits were discovered there in 1967. At its historical peak, the diamond industry accounted for as much as 40% of the nation’s GDP and as much as 90% of export revenues. Unlike many other African mining nations that were exploited by foreign entities, Botswana has had a slice of the mining pie from the very beginning, and grew it even further over time. This helped it become one of the wealthiest and most politically stable African nations. Today, the government of Botswana receives nearly 85% of all profits generated by diamond mining in the country.

But the diamond industry is facing an existential crisis. The sharp rise in popularity of lab-grown diamonds — which are chemically and visually identical — has diminished the value of so-called natural diamonds, offering the shimmer and shine without the high costs and moral qualms. The Diamond Standard Index, which tracks the price of investment-grade diamonds, hit its lowest point this century this past spring as diamond sellers continue to see their sales flag. There is now fear across the industry that, outside of super-rare stones aimed at the highest tier of luxury customers, the market might never recover.

This, as you can imagine, hasn't been great for Botswana, and the effects of the downturn have already rippled through the broader economy. The unsteady state of the diamond industry has contributed to an equally unsteady economy that has ping-ponged between quarters of growth and contraction since last year. In fact, in Q2 of 2025, faltering diamond sales were directly responsible for a GDP contraction of 5.3% — the steepest quarterly decline since the pandemic. Meanwhile, this past March, S&P Global Ratings cut Botswana's sovereign credit rating, citing structural weakness in diamond demand.