Botswana is racing to finalize a deal for majority control of diamond giant De Beers by the end of October,as President Duma Boko declares the move “a matter of economic sovereignty for Botswana.”
The southern African nation,already holding 15% of De Beers,is negotiating with Anglo American,which is divesting its 85% stake amid a global restructuring. The deal comes as De Beers’ dominance fades,challenged by surging demand for lab-grown diamonds and declining natural stone prices. Botswana is in talks with potential partners,including Oman’s sovereign wealth fund,to help finance the acquisition. President Boko insists financing won’t be a barrier — despite fiscal deficits projected at 7.56% of GDP in 2025/26.
Diamonds contribute over 80% of the southern African country’s exports and a third of state revenue. Yet with the diamond market under pressure,the nation is seeking “Botswana’s full control over this strategic national asset and the entire value chain,including marketing,” said Mines Minister Bogolo Kenewendo. Anglo American has received interest from other parties,including former De Beers CEOs,and may consider an IPO or demerger. Still,Botswana insists any sale without its support “will be difficult to achieve,” said Kenewendo.
If successful,the deal could mark a rare shift in global commodity power — putting more of the diamond story,and its profits,in African hands. “Reclaiming the sparkle,” as observers describe it,may be Botswana’s boldest bet yet on its mineral future. “And for the first time in generations,Africa has more leverage — and more of the world’s attention — than ever before,” said a commentary in Shoppe Black multimedia platform.
United News - unews.co.za