Botswana's Okavango Diamond Company Diversifies Sales Channels with New Deal

Botswana’s state-owned Okavango Diamond Company (ODC) is set to initiate contracted gem sales in September, following a new marketing contract with De Beers. This shift allows ODC to diversify its sales channels, selling 40% of its supply through contracts. The changes come amidst a recovering global diamond market.

Botswana's Okavango Diamond Company, a state-owned enterprise, will begin contracted sales of gems in September, as announced by Managing Director Mmetla Masire. This move, part of a new marketing arrangement with De Beers, allows ODC to expand its sales strategies.

Under the revised agreement, ODC will increase its share of Debswana's production to 30%, selling 40% of its diamonds through contracts. Previously, its sales were primarily conducted through online auctions. The selection process for buyers is underway, with contracts planned for issuance by September.

While the global diamond market faces challenges such as declining demand and a supply glut, Masire indicated potential market recovery. ODC's change in strategy comes as the company targets increased demand from regions like China and India after a downturn in revenues.

(With inputs from agencies.)