Botswana is courting investors from the United Arab Emirates and Oman as it seeks greater control of diamond giant De Beers following Anglo American’s planned exit from the business, according to reporting by Bloomberg.
The move could prove pivotal for the future ownership of one of the world’s most influential diamond companies. For Botswana, whose economy remains heavily dependent on diamond revenues, increasing its stake would strengthen its ability to influence production, marketing and pricing decisions at a time when the global diamond industry is facing slowing demand and mounting competition from laboratory-grown stones.
Botswana eyes greater control over diamond wealth
Botswana currently owns 15 percent of De Beers, while Anglo American holds the remaining 85 percent. Anglo’s decision to dispose of the business as part of a wider restructuring programme has created a rare opportunity for Gaborone to expand its influence over a sector that has underpinned the country’s economic success for decades.
President Duma Boko said his government is in discussions with potential partners in the UAE and Oman as it evaluates financing options and strategic alliances that could support a larger acquisition.
The discussions build on Botswana’s broader strategy of attracting international capital to support economic transformation, following initiatives such as the country’s proposed $12bn investment partnership with Qatar.
According to Bloomberg, Botswana views Gulf investors as attractive partners because of their growing appetite for long-term investments in African natural resources and infrastructure projects.
The government has not publicly disclosed how large a stake it hopes to acquire or how any transaction would be structured.
Diamond downturn adds urgency
The timing of the discussions reflects mounting pressure on Botswana’s economy.
Diamonds account for roughly 80 percent of the country’s export earnings and remain a major source of government revenue. However, the sector has been hit by weaker consumer demand in key markets, particularly China, as well as the rapid rise of synthetic diamonds.
The downturn has reduced revenues across the industry and forced producers to reassess long-term strategies. Earlier this year, Africa Briefing reported how the global diamond slump was weighing on Botswana’s economic growth outlook, highlighting the country’s vulnerability to prolonged weakness in gemstone demand.
For Botswana, securing a larger role in De Beers is increasingly viewed as a strategic necessity rather than simply a financial investment. Greater ownership could provide the country with stronger influence over decisions affecting mining operations, sales strategies and future investment priorities.
Anglo reshapes mining portfolio
Anglo American’s planned exit from De Beers forms part of a broader corporate overhaul initiated after the company rebuffed a takeover approach from BHP Group.
The mining company has been concentrating on commodities viewed as essential to the global energy transition, particularly copper, while seeking to dispose of assets considered non-core.
The sale process comes during one of the most challenging periods for the diamond industry in recent years. Declining prices and weaker demand have reduced the value of De Beers and complicated efforts to identify buyers willing to make a major acquisition.
Botswana’s pursuit of a larger stake follows months after Gaborone and De Beers concluded negotiations on a landmark sales agreement. In January, the two sides finalised a new diamond sales and mining licence deal that was widely viewed as strengthening Botswana’s position within the global diamond value chain.
Bloomberg reported that the market downturn has significantly affected De Beers’ valuation. Anglo American has taken substantial writedowns on the business over the past two years as rough diamond prices weakened and inventories grew. Those conditions may complicate the sale process but could also create an opportunity for Botswana and its partners to negotiate more favourable terms than would have been possible during the industry’s boom years.
Why De Beers matters to Botswana
Few companies have had a greater impact on Botswana’s economic development than De Beers. Through Debswana, the long-running joint venture between the government and De Beers, diamond mining has helped transform Botswana from one of the world’s poorest countries at independence into one of Africa’s most stable middle-income economies.
Diamond revenues have funded infrastructure, education, healthcare and public services for decades. The sector supports thousands of direct and indirect jobs and remains a cornerstone of government finances.
A larger ownership stake would therefore be about more than financial returns. It would give Botswana greater influence over decisions affecting an industry that remains critical to national development and long-term economic planning.
Resource sovereignty shapes strategy
The government’s interest in expanding its ownership of De Beers also reflects a wider trend across Africa, where resource-rich nations are seeking greater control over strategic assets.
From copper in Zambia to lithium in Zimbabwe and gold in the Sahel, governments are increasingly pursuing policies aimed at retaining a larger share of the economic benefits generated by natural resources.
Botswana’s approach differs from more confrontational forms of resource nationalism seen elsewhere on the continent. Instead, the country has largely favoured negotiated partnerships and gradual increases in local participation.
Nevertheless, securing a larger stake in De Beers would represent one of the most significant steps yet in Botswana’s long-standing effort to exercise greater influence over its most important natural resource.
Credit: Africabriefing
