ODC, created in 2012 to market diamonds independently of De Beers, currently secures 25% of its diamonds from Debswana, a joint venture between Botswana and Anglo American’s De Beers.
In June 2023, Botswana secured a new 10-year diamond sales agreement with De Beers, set to gradually increase ODC’s share of Debswana’s diamond output from 30% to 50%, as part of efforts to boost the country’s revenue from its natural resources.
After the maturity of a $140 million working capital facility in 2023, Finance Minister Peggy Serame announced that ODC has tasked Standard Chartered Bank with structuring and coordinating a new $300 million syndicated revolving capital facility.
The diamond industry has been hit by a downturn, leading to a 49% drop in Debswana’s sales during the first half of the year.
Last October, ODC paused its rough diamond sales to help reduce the excess inventory in the cutting and polishing sector, which was impacted by weak global jewellery demand.
Finance Minister Peggy Serame noted that the industry is expected to recover by the fourth quarter of 2024, with the new credit facility enabling ODC to take advantage of the market rebound.