Okavango Diamond Company to Introduce First Contract Sales Amid Market Challenges

Okavango Diamond Company to Introduce First Contract Sales Amid Market Challenges. Botswana’s state-owned Okavango Diamond Company (ODC) is preparing to launch its first-ever contract sales next month, signaling a strategic shift in how the country’s diamonds are sold. This new approach moves away from the online auction model, which currently accounts for about 90 percent of ODC’s sales, toward a direct-to-buyer system similar to the model used by De Beers.

Contract sales were previously restricted under long-standing agreements between De Beers and the Botswana government. A new 10-year agreement signed in February has now cleared the way for ODC to engage buyers directly, offering greater flexibility in managing sales and building long-term relationships with customers.

The company will pilot the initiative with two sales in November and December, with plans to scale up operations in early 2026. Managing Director Mmetla Masire has indicated that ODC aims to sell up to 40 percent of its rough diamond production through these contracts once the system is fully implemented.

The move comes in response to recent market challenges. In an unusual development last month, ODC was unable to sell any diamonds in a 1-million-carat ad hoc tender—a first in the company’s history. Several other tenders have also been canceled since November 2024, reflecting softer global demand for rough diamonds.

By introducing contract sales, ODC hopes to provide more predictable revenue streams and strengthen Botswana’s position in the global diamond market. The new model could offer buyers greater certainty while allowing the company to better manage its production and respond to fluctuating market conditions.