Botswana diamond exports plummets 68% as De Beers sales slumped $1 billion

Botswana's Central Bank said in a statement later last week that the country's diamond exports were plunged 68% over Q2, 2020

by Sourav D
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Botswana diamond exports plummets 68% as De Beers sales slumped $1 billion

Botswanan Central Bank data published later last week had unfurled that the diamond-rich Southern African country’s diamond exports had beaten an apocalyptic retreat of 68 per cent over the second quarter of the year as the ongoing global pandemic outbreak had been denting diamond demands, while travel restrictions had added further strains on diamond trading in the landlocked nation.

In point of fact, Botswana, the landlocked landscape defined by the Kalahari Desert and Okavango Delta and 30 per cent of which entire GDP (Gross Domestic Product) used to be yielded from Diamond mining and trading, had shut down its borders in mid-March which in effect had blocked out diamond traders from a swathe of global diamond trading HubSpots ranging from Mumbai to Antwerp to Beijing who usually travel to Gaborone at least ten times a year in order to view and purchase diamonds.

Botswana-De Beers JV diamond exports jolted by a third as overall exports plunged 68%

On top of that, as the beleaguered diamond industry mogul De Beers’ JV with Botswana exports stood at $293 million over Q2, 2020, compared to a $916 million at the same time a year earlier, Central Bank of Botswana said in a statement later last week that no diamonds were exported in May, while only $20 million worth of diamonds were exported in June.

Besides, following a sweeping plunge in Botswana’s export of the precious metal during the pandemic-scarred second quarter of the year, the diamond industry giant De Beers that has been choking amid a stubborn rise in the sales of synthetic or lab diamonds, had reported a net loss of $214 million over the first half of the year as Botswana alone had been accountable for 70 per cent of diamond supplies for De Beers.

In tandem, as a cataclysmic decline in diamond export would likely to inflict deeper wounds into the mining-oriented economy of Botswana and has been expected to widen the nation’s balance of payments deficits, London-based De Beers’ rough sales were slumped over 50% to $1 billion.

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