Botswana’s diamond industry has received a powerful vote of confidence as De Beers reveals that American consumers are spending more on natural diamonds than ever before.
This surge boosts hopes that the company’s new partnership with Botswana could unlock a P7 billion development fund and restore faith in the sector. Despite mounting competition from synthetic alternatives, natural diamonds remain the most coveted luxury jewelry in the United States.
This upbeat outlook arrives at a pivotal moment for Botswana, whose economy has been strained by weak diamond sales over the past two years. Recently, the government and De Beers finalized a landmark agreement, including the creation of a P7 billion Diamonds for Development Fund.
During a parliamentary session, the Standing Committee on Government Assurances’ sixth day of examination, Donald Gaetsaloe, Permanent Secretary in the Ministry of Minerals and Energy, conceded he could not answer several questions posed by lawmakers. “I would like to go back and verify the information. I do not have the answer today, but I will provide the answer in due course,” Gaetsaloe said.
His response drew sharp criticism from Tswapong South Member of Parliament Dr. Kesitegile Gobotswang, who challenged the ministry’s apparent lack of preparation. “You cannot tell me that you are going somewhere else to look for an answer,” Gobotswang said.
Meanwhile, De Beers’ newly released US Diamond Acquisition Study, surveying 18,500 women aged 18 to 74, paints a bullish picture for natural diamonds—and by extension, Botswana’s mining-dependent economy. The study found natural diamonds to be the most desired luxury jewelry in the United States, with 11 percent of women naming them as their preferred luxury gift, outpacing lab-grown diamonds, colored gemstones, and gold jewelry.
Consumer spending on natural diamonds is accelerating as well. The average price paid for natural diamond jewelry jumped 25 percent, from $3,242 in 2023 to $4,063 in 2025, driven largely by buyers opting for larger stones with higher carat weights. A standout revelation: Generation Z, which makes up only 18 percent of the U.S. population, now accounts for 23 percent of natural diamond demand by value, spending an average of $4,080 per purchase, almost double the $2,250 spent by Baby Boomers.
Diana Mitkov, De Beers’ lead researcher, said the findings underscore the enduring allure of natural diamonds despite evolving consumer habits. “The study findings highlight that today’s consumers aspire to own natural diamonds just as much as the generations that came before them, and ahead of any other jewelry product. They are spending more per piece than ever before,” Mitkov said.
Mitkov also noted a shift in the occasions driving diamond purchases. Consumers increasingly buy diamonds to mark promotions, career milestones, birthdays, and personal achievements, not just engagements and weddings. “Traditional life milestones such as getting engaged are no longer the only value driver for the industry. Consumers are increasingly marking a wide range of occasions with natural diamonds and are looking for distinct pieces that feel personal to them,” she said.
The report shows that non-bridal purchases now make up nearly three-quarters of all natural diamond demand in the U.S., signaling a profound shift in consumer behavior. Data from 950 independent jewelry retailers reveals natural diamonds account for 85 percent of total diamond sales value, while lab-grown diamonds make up just 15 percent, despite rising sales volumes.
Eirik Wærness, De Beers’ Executive Vice President for Corporate Affairs and Strategy and Chief Economist, believes the industry is entering a stronger phase supported by improving fundamentals. “Declining global production of natural diamonds is expected to support an improved supply-demand balance over the coming years. A resilient U.S. economy and stabilizing demand in China saw global natural diamond demand return to growth in 2025, creating significant opportunities to reinforce the value of natural diamonds and support long-term growth,” Wærness said.
For Botswana, De Beers’ findings are more than a market report, they signal that demand for the country’s most vital export remains robust at a time when public finances have been squeezed by a prolonged slump in diamond revenues. Rising prices, increased spending by younger consumers, and a growing preference for natural stones could boost government revenue, mining investment, and confidence in the new Botswana-De Beers partnership.
Yet, the tense exchange between parliamentarians and the Ministry of Minerals and Energy exposes a governance challenge. As Botswana prepares to benefit from billions of pula under the new agreement, lawmakers are demanding greater transparency and accountability from officials overseeing the nation’s mineral wealth. The contrast between De Beers’ optimism about natural diamonds’ future and Parliament’s frustration over unanswered questions underscores that the sector’s success will depend not only on global demand but on effective leadership and oversight at home.
“Sustainable development can only be achieved when government and the private sector work hand in hand to unlock opportunities and build confidence in our economy,” he said.
For the government, this development represents more than a real estate project. It is intended as a catalyst for broad economic growth, creating an ecosystem that attracts multinational companies, investors, conference organizers, and tourists alike.
President Duma Boko echoed these sentiments, calling the Botswana World Trade Centre, a key component of the project, a defining milestone in the country’s economic journey.
Advocate Boko described the project as the start of the New Botswana City and a clear signal of Botswana’s determination to forge a diversified, modern, and globally competitive economy.
“If we execute these projects successfully, we can be spectacularly different within the next three years,” Boko said.
The development is set to elevate the Sir Seretse Khama Airport precinct as a gateway for regional business activity, while enhancing Botswana’s capacity to host major international conferences, exhibitions, and investment forums.
Once completed, the New Botswana City will stand as one of Botswana’s most significant infrastructure investments, symbolizing the nation’s ambition to build a diversified economy driven by trade, tourism, innovation, and private sector growth.