Botswana diamond slump hits miners living on the edge of survival | News
Orapa, Botswana – A year after losing his job, Motshwegwa Rakhudu reflects on his abrupt termination from Debswana’s diamond mining operations, where he served as an installer for 14 years. Rakhudu, who worked under rolling three-year contracts with Enabler Hires (Pty) Ltd, had anticipated his employment would continue until 2027. Instead, he was retrenched without warning.
“The shock was too much,” Rakhudu, using a pseudonym to protect his identity, told Al Jazeera. He had taken a loan of 26,000 pula (approximately $1,900) in early 2025 to purchase a car, believing his job security was assured. By mid-May, he found himself unemployed, facing difficulties with debt and household obligations such as school fees, all without any compensation.
“The suddenness of the retrenchment has been very challenging. Jobs are limited, and even available positions outside the mining sector offer lower wages. I am still searching for work,” he stated.
Rakhudu has considered farming or launching a small business but lacks the necessary capital. Selling his car would only suffice to settle the outstanding loan.
“I want to pursue farming, but selling the car wouldn’t provide any extra funds,” he added.
Attempts to reach Gaotlhobogwe Radikwata, a senior management official at Enabler Hires, for comment on the recent layoffs were unsuccessful. Radikwata declined an interview, stating she was not at liberty to share information.
Jobs Vanish as Diamond Production Slows
These layoffs coincide with a significant downturn in Botswana’s diamond sector, which is crucial to the nation’s economy. Debswana Diamond Company, a collaboration between the Botswana government and De Beers, announced a 27% cut in production for 2024, reducing output to 17.9 million carats. Due to weak global demand, further production cuts are planned, with projections of around 15 million carats for 2025. This company accounts for approximately 90% of Botswana’s diamond sales.
This slowdown has had widespread economic implications. According to Reuters, Botswana’s output contracted by approximately 5.3% in the second quarter of 2025—the sharpest decline since the onset of the pandemic—primarily due to decreased diamond production. Diamonds constitute about 70% of Botswana’s export earnings and a third of government revenue. In 2025, S&P Global Ratings downgraded Botswana’s sovereign credit rating to BBB-, attributing the decision to persistent pressures from the global diamond market and declining fiscal revenues.
Household Pressure Builds Across Mining Communities
The repercussions of the downturn are being felt acutely by workers.
“The diamond downturn is no longer just a business issue; it is a human issue affecting workers, families, contractors, and entire mining communities,” said Mbiganyi Gaekgotswe, General Secretary of the Botswana Mineworkers Union. He noted that uncertainty now permeates everyday life.
“The primary concern is job security. Are contracts going to be renewed? Will overtime be reduced? These issues directly impact school fees, loan repayments, medical expenses, and family responsibilities,” he remarked.
Even those still employed are facing mounting pressure as wages stagnate while living costs rise.
Beyond Diamonds: Searching for New Growth
The restructuring in the diamond industry has extended to contractors and service providers, with many workers shifted to short-term agreements, according to Dominic Obusitse Mapoka, Chairperson of the Botswana Diamond Workers Union. He reported that many employees now work under temporary contracts, complicating family planning due to uncertainties about job renewal.
Many miners earn between $190 and $250 monthly as the cost of living continues to climb, affecting local small businesses tied to the mining operations.
Since its independence in 1966, Botswana has leveraged its diamond wealth to transform from one of the world’s poorest nations into a middle-income economy, financing infrastructure and public services. However, this reliance makes the country vulnerable to global economic shifts. Challenges like weak demand, competition from lab-grown diamonds, and reduced spending on luxury items have placed additional strain on the sector, according to S&P Global Ratings.
Levy Ndou, a political scientist at Tshwane University of Technology, emphasized the risks associated with economic over-dependence on a single sector. “When citizens rely heavily on one industry, a decline in global demand can have serious consequences,” he stated. He advocated for faster diversification into agriculture and beef production, alongside stronger regional trade connections.
In response, Botswana’s Minister of Labour and Home Affairs, Pius Mokgware, indicated that the government is working to mitigate job losses, including efforts to expand copper mining and initiate new projects. Diversification strategies are also being implemented in agriculture, tourism, and information technology.
Repeated requests for comments from Minister of Minerals and Energy, Bogolo Joy Kenewendo, went unanswered.
Tshepo Modibedi, President of the Small Scale Miners Association of Botswana, remarked on the exclusion of smaller operators from the diamond value chain, which is predominantly controlled by larger companies.
“While not directly involved with diamond production, the downturn still affects households nationwide,” he noted.
“Lab-grown diamonds and stringent regulations pose challenges but may also present opportunities if policy becomes more inclusive.”
For Rakhudu, the broader economic shifts remain distant from his daily struggles.
“I am still looking,” he stated. “I just want another chance to work.”
