Weaker diamonds cause 49% fall in July exports

Mbongeni Mguni | Thursday October 10, 2024 19:05

 

National pride: Botswana is the largest producer of diamonds by value and the country most dependent on revenues from their mining

According to the data agency, in July, the country’s trade balance – or the difference between the values of exported and imported goods, widened to a shortfall of P4.2 billion from a deficit of about P3 billion in June. The country’s trade balance has been in negative territory since September last year when diamonds entered a slowdown broadly caused by oversupply in the retail end of the market.

According to Statistics Botswana figures, the declining export figures in July were caused by diamonds, whose exports dropped 68% in the month to P1.1 billion. The most recent time that diamond exports were lower than the July figure was in April 2020, but the zero exports recorded for that month were possibly due to the travel bans instituted for the COVID-19 pandemic.

According to Statistics Botswana numbers, the July trade deficit could have been higher, had diamond imports for the month not dropped by about 77% to P446 million. Under government’s agreement with De Beers, rough diamonds from the group’s operations around the world are imported into Botswana for processing, together with locally produced stones, before subsequent sale to buyers from around the world. Therefore, Statistics Botswana records diamonds as both imports and exports.