Rough diamond sales by Debswana Diamond Co declined in Q1, according to data published by the Bank of Botswana, as caution increased in the market over uncertainty surrounding the global macroeconomic outlook.

Debswana – which is a joint venture between Botswana's government and the De Beers Group of Companies – sells 75% of its output to De Beers, with the remainder going to state-owned Okavango Diamond Co.

Between January and March, sales of diamonds from Debswana declined 1.4% to stand at $1.077 billion, Reuters news agency reports, compared to $1.092 billion during the same three-month timeframe last year.

In terms of Botswana's Pula, the rough diamond sales registered a 10.1% rise to 14.005 billion Pula, indicating the impact of a stronger Dollar during the period.

As it stands, De Beers and Botswana are renegotiating their sales agreements and mining rights. President Mokgweetsi Masisi stated the government is seeking to acquire more rough diamonds for trading outside the De Beers system. 

Back in March, Masisi said: "Besides the fact that the diamonds are ours, it doesn't make sense for us to continue to relegate ourselves to participating in the rough space only. So, it's only logical that we want more, and we are going to get more. But through negotiation." 

Whereas De Beers Chief Executive Officer Al Cook said at the time: "It's very clear that, front and foremost in the president's mind is the interest of the Botswana people. We, as De Beers, want to play our role in a strong, strategic partnership. I'm very confident that this partnership will go forward in a very good way."

Debswana accounts for the majority of diamonds produced in Botswana, the Reuters report adds. The country obtains around 30% of its revenues and 70% of its foreign exchange earnings from diamonds.