Botswana, a landlocked southern African nation whose economy depends on diamonds for roughly 70% of export earnings and a third of government revenue, is facing acute strain as global demand for the gemstone weakens. Debswana Diamond Company (a joint venture between the government and mining giant De Beers that accounts for about 90% of Botswana's diamond sales) cut production by 27% in 2024 and plans further reductions in 2025, triggering widespread layoffs among contractors and miners; the country's GDP contracted by around 5.3% in the second quarter of 2025, its sharpest decline since the pandemic. The crisis, compounded by competition from lab-grown diamonds and reduced luxury spending worldwide, has prompted a credit-rating downgrade by S&P Global Ratings and intensified calls for Botswana to diversify into agriculture, tourism, copper mining, and technology before another global shock hits.