President Duma Boko has declared that his government intends to secure a controlling share in De Beers by the end of October, pushing Botswana to renegotiate its position in the global diamond supply chain. The move comes as Anglo American, the majority owner of De Beers, appears ready to divest its 85 percent stake.
Botswana currently holds 15 percent of De Beers and jointly operates the mining group’s largest source of supply through the Debswana venture, which contributes roughly 70 percent of De Beers’ rough diamond output. Boko has stated that talks are underway with parties including Oman’s sovereign wealth fund to raise the funds needed for the acquisition. He described the transaction as “a matter of economic sovereignty for Botswana.”
The urgency behind Botswana’s bid reflects worsening conditions in the diamond sector: demand softening, competition from lab-grown stones, and inventory overhangs have squeezed producers globally. De Beers slipped into a half-year loss earlier this year, and Anglo has already twice written down its valuation, most recently placing it at around $4.1 billion.
Officials at Anglo have confirmed they are engaging with Botswana as one of several bidders in the divestment process. A shortlist of potential buyers is being assessed. The successful bidder must have credible experience in the diamond industry and be able to navigate complex joint-venture and licensing regimes.
Botswana’s decision to appoint Lazard and Swiss bank CBH Compagnie Bancaire Helvétique as co-advisers underscores the deal’s financial complexity. The government insists funding is manageable, though analysts remain cautious given Botswana’s tight fiscal position and the scale of the premium likely required to secure control.
Competing bids have also emerged. Angola’s state mining company Endiama submitted a fully financed offer for a minority stake, proposing a pan-African consortium including Namibia, South Africa and Botswana. That approach aims to preserve De Beers’ transnational character and prevent dominance by any single state.
Internally, Botswana faces political and administrative challenges. Reports suggest that President Boko has driven the acquisition strategy with limited consultation with the finance and minerals ministries, raising concerns over process transparency. With the country already forecasting a budget deficit of over 7 percent of GDP and entering a second year of economic contraction, the financial burden of assuming control of De Beers is nontrivial.
For Botswana, acquiring majority control would shift it from resource supplier to market influencer. It could reorganise marketing, pricing decisions and sales channels to better align with its development agenda and gain leverage competing with synthetic alternatives. Meanwhile, the extension of licenses via a fresh diamond-sales agreement signed earlier this year gives Gaborone additional standing in negotiations.
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