Botswana diamond slump hits miners living on the edge of survival

Motshwegwa Rakhudu, who worked for 14 years as an installer at Debswana diamond mining operations in northern Botswana, lost his job in early 2025. He had been on renewable contracts with Enabler Hires (Pty) Ltd and expected his employment to continue until 2027. However, he was retrenched without warning, leaving him struggling to manage debts, including a 26,000 pula loan taken out for a car just months prior.

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The shock was too much. In early 2025, I took a loan of 26,000 pula (about $1,900) to buy a car because I believed my job was secure. By mid-May, I was out of work.

Rakhudu described the shock of his sudden unemployment, stating that selling his car would only cover his outstanding loan. He is now seeking work, but jobs are scarce, and available positions outside the mining sector offer significantly lower pay. He has considered farming or starting a small business but lacks the necessary capital.

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I would want to go into farming, but if I sell the car, the money will only clear the loan.

The retrenchments are a direct consequence of a sharp slowdown in Botswana's vital diamond sector. Debswana Diamond Company, a joint venture between the government and De Beers, reduced its production by approximately 27% in 2024 and plans further cuts. This decline has had a ripple effect across the economy, contributing to a 5.3% contraction in Botswana's output in the second quarter of 2025, the largest fall since the pandemic.

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I am not going to answer your questions even if you convince me you are from Al Jazeera. Who gave you my number? I never shared my contacts with journalists. I am not at liberty to share information.

The diamond industry is crucial to Botswana's economy, accounting for about 70% of export earnings and a third of government revenue. The sustained pressure from the global diamond downturn and weakening fiscal revenues led S&P Global Ratings to downgrade Botswana's sovereign credit rating to BBB- in 2025. Mbiganyi Gaekgotswe, General Secretary of the Botswana Mineworkers Union, noted that uncertainty now pervades mining communities, with workers constantly questioning job security and contract renewals.

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The diamond downturn is no longer just a business issue. It is a human issue affecting workers, families, contractors and entire mining communities.