Botswana Lures Wealthy Young Americans With Big, Natural Diamonds
Botswana, the world’s top diamond producer, is looking to attract wealthy young American buyers to its natural gems as a way to boost its economy.
To capture their attention, the country is leveraging social media platforms like Instagram and TikTok.
As part of this strategy, Botswana hosted an exclusive luxury event in New York’s Greenwich Village last week, treating social media influencers to a fine dining experience at a Michelin-starred restaurant, Bloomberg reported.
The goal was to persuade affluent millennials and Gen Z consumers to choose natural diamonds over lab-grown alternatives.
Bogolo Kenewendo, Botswana’s 37-year-old mines minister, “One of our strategies is to really counter synthetics,” said.
Kenewendo is championing the country’s natural diamonds amid growing competition from cheaper, lab-grown alternatives.
Synthetic gems have greatly driven down prices for lower-quality stones, posing a major blow to the Southern African nation, which derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.
In the first half of 2024, sales of rough diamonds in Botswana dropped by 49.2%, according to data from the country’s central bank. In response to declining diamond revenues, the government said it would cut spending on new vehicles and travel for officials and may delay certain capital projects.
Aside from lab-grown alternatives, diamond sales have been hampered by an oversupply, weak demand from the crucial Chinese market, and inflation-stricken consumers.
As synthetic diamonds continue to dominate the market for cut stones priced under $750, Botswana is shifting its focus toward high-end jewellery buyers.
The country is emphasizing the traceability of its natural diamonds, ensuring they can be authenticated as originating from Botswana mines through blockchain technology, according to Kenewendo.
