Okavango Diamond Company Expands Contract Sales to Stabilise Revenues
Botswana’s Okavango Diamond Company Targets 50% Contract Sales to Navigate Weak Diamond Market
Botswana’s state-owned Okavango Diamond Company (ODC) plans to increase the proportion of rough diamonds sold through long-term contracts in response to a depressed global diamond market, Acting Managing Director Lipalese Makepe said on Wednesday.
Contract sales offer greater predictability than auctions and tenders, which are highly competitive and can result in price volatility.
The shift comes amid surplus supply, weakening consumer demand and the growing popularity of lab grown diamonds, all of which have pressured rough diamond prices in recent years. Broader global economic slowdown has further dampened sales.
Shift Enabled by New De Beers Agreement
Until 2024, ODC primarily sold diamonds through auctions and tenders due to contractual restrictions preventing it from directly competing with De Beers.
However, following a new agreement signed between the Government of Botswana and De Beers in February 2025, ODC was able to introduce contract sales.
“We piloted the contracts in November and December with an average of 14 customers,” Makepe told Reuters on the sidelines of the Investing in African Mining Indaba in Cape Town. The number of contracted customers has since increased to 32.
ODC now plans to sell approximately 50% of its Debswana allocation by value through contracts, up from an initial target of 40%. The remaining allocation will continue to be sold through its regular ten annual auctions, strategic partners and citizen-owned companies. Special auctions may also be considered despite an inconclusive attempt last year.
Allocation Growth from Debswana
In 2025, ODC sold about three million carats from an allocation of more than four million carats. Sales in 2026 are expected to remain within a similar range, in line with production allocations from Debswana—Botswana’s diamond mining joint venture with De Beers.
ODC’s share of Debswana’s production has increased to 30%, up from 25%, and is set to rise to 40% by the end of the current 10-year agreement.
De Beers, the world’s largest diamond company by value, is a subsidiary of Anglo American. Anglo American is currently pursuing a sale of De Beers as part of its strategic restructuring.
CEO Duncan Wanblad indicated on the sidelines of the Indaba conference that the divestment remains a priority and is likely to involve a consortium, given the limited number of large strategic players in the diamond sector.
By expanding contract sales, ODC aims to improve revenue stability and strengthen its position in a challenging global diamond market.
