The Okavango Diamond Company (ODC), a government-owned entity in Botswana, is poised to revolutionize its approach to selling precious stones in response to an impending surge in uncut diamonds. This change stems from a recent agreement inked between Botswana and diamond miner De Beers, which will elevate ODC’s share of rough diamonds from the Debswana joint venture to 50% over the next ten years, up from the current 25%.
Presently, ODC employs an auction system to sell a quarter of the gems extracted from the Debswana collaboration with De Beers. However, the evolving dynamics in the diamond industry, characterized by an uncertain economic outlook and heightened competition from lab-grown gems, have necessitated a strategic shift.
As ODC gears up for a more substantial influx of uncut diamonds, it recognizes the need to optimize its existing auction processes. Moreover, the company seeks to mitigate risks within its operations and accommodate diverse customer preferences by establishing alternative selling channels.
Mmetla Masire, Managing Director of ODC, communicated to Reuters via email that the current auctions must undergo optimization to align with changing market conditions. Furthermore, Masire emphasized the imperative of supporting other customers seeking alternative avenues for acquiring diamonds.
In this context, ODC envisions a new sales channel that would operate concurrently with its auction mechanism, creating a comprehensive strategy that adapts to the evolving diamond landscape while maintaining the company’s commitment to efficiency, risk management, and diverse customer engagement.
