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How Botswana’s diamond slump is fuelling energy crisis fears

Aerial view of a mine. Photo by Volker Braun @ Pexels
Aerial view of a mine. Photo by Volker Braun @ Pexels
  • Diamond and gold prices drag the mining sector lower
  • Utility costs surge, squeezing industry and households

 

GABORONE, BOTSWANA – Botswana’s mining sector is under mounting pressure as falling diamond and gold prices collide with rising utility costs, exposing deep vulnerabilities in the country’s resource-dependent economic model.

Fresh data from Statistics Botswana shows the Mining Producer Price Index (PPI) edged down to 100.3 in the fourth quarter of 2025, reflecting declining prices for key exports. Diamonds fell 5.4%, while gold dropped 4.8%, offsetting a sharp 43.1% surge in coal prices.

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