Diamonds Aren't Forever for Botswana as Mining Boom Fades
- Russia displaces Botswana as world's top diamond producer
- Power, water shortages compound effect of gem-price slump
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The honeymoon is over in Botswana, where the diamond industry that led the world has fallen on hard times.
The discovery of the gems nearly half a century ago transformed the southern African nation from a dusty farming backwater into one of the continent’s wealthiest societies. Thousands of miles of dirt roads were paved and schools and clinics built in every town. The capital, Gaborone, once a rural village, is now dotted with office blocks and malls occupied by South African chains like Shoprite Holdings Ltd. The country’s finances were in such good shape that Botswana earned the highest credit rating in Africa.