Botswana’s Okavango Diamond Company Shifts to Long-Term Contracts to Stabilize Supply

Botswana’s state-owned Okavango Diamond Company (ODC) said in mid-February 2026 that it will move a substantial share of its rough-diamond allocation from spot auctions and tenders into longer-term contract sales, targeting roughly 40 percent of supply for that channel. Managing Director Mmetla Masire framed the shift as a strategy to “provide greater supply security for customers while supporting ODC’s strategic growth.”

The pivot follows a February 2025 revision to the 10-year sales deal between the Botswana government and De Beers that increased ODC’s allotment from Debswana from 25 percent to 30 percent and set that allocation to rise to 40 percent by the end of the contract. ODC began piloting direct contract sales in November and December 2025, an operational start enabled by the amended De Beers arrangement.

ODC director of marketing Lipalese Makepe provided operational details from the pilot phase, saying the pilot contracts were completed in November and December and averaged 14 customers. Makepe added that the number of buyers who have subsequently signed contracts increased to 32 and that “we plan to sell approximately 50% of our Debswana allotment by value.” Makepe also said ODC sold roughly 3 million carats from an allocation of over 4 million carats and that 2026 sales were expected to be in the same range.

Historically ODC channelled its entire allotment through 10 annual spot auctions and citizen tenders; the new plan will retain auctions alongside contract sales, strategic partnerships and domestic beneficiation initiatives. Zambia-based industry coverage noted ODC’s move will let vetted buyers specify parcel requirements and agreed volumes and pricing mechanisms in advance, reducing the price volatility common at auctions.

Market context underpins the shift. Global demand weakness, surplus supply and the growing market for lab-grown diamonds have pressured natural-diamond margins, prompting producers to seek steadier revenue streams and closer buyer relationships. ODC management cited predictable revenues and supply security as motives; auction performance showed margin improvement from double-digit losses in 2024 to small positive margins in recent rounds, a sign some buyers are regaining confidence.

The new contract channel is already changing buyer dynamics for Botswana’s industry. Pilots in November–December 2025 introduced direct access for a core set of customers, and ODC’s mid-February 2026 announcement signals plans to scale that access to around 40 percent of rough supply while continuing auctions and citizen tenders for the remainder. With diamonds still a major contributor to national finances, the recalibration of how rough stones reach polishers and manufacturers could reshape supply predictability and pricing for the trade in the months ahead.