The Government of Botswana has formally declared its intention to pursue a controlling interest in De Beers, potentially reshaping the future ownership of one of the world’s leading diamond companies. The move comes as Anglo American prepares to divest from De Beers as part of a broader corporate restructuring effort.
Currently, Botswana holds a 15% stake in De Beers and co-owns Debswana a key diamond mining joint venture on a 50/50 basis with the company. However, the country is now aiming to significantly expand its stake and secure greater control over the diamond production and marketing value chain.
National ownership
Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, revealed that President Duma Boko is determined to bring the diamond giant under greater national ownership. “We are no longer looking to simply increase our shareholding we are seeking full oversight of this strategic asset,” she said.
The announcement adds a new layer of complexity to Anglo American’s current process to offload De Beers. With a deadline for bids expected in early August, Botswana’s firm opposition to an external sale without its involvement could discourage potential investors.
Kenewendo criticised Anglo American’s handling of the sale, saying the process lacked transparency and proper engagement with the government. “They have not coordinated with us in good faith,” she noted, warning that any transaction that sidelines Botswana would likely face significant resistance.
Anglo American is reportedly exploring a dual-path strategy either selling De Beers outright or pursuing a stock market listing should a suitable buyer not emerge. The company has been under pressure to streamline its portfolio after rejecting a $52.8 billion acquisition offer from mining giant BHP in 2024.
De Beers, meanwhile, is facing headwinds due to a sluggish diamond market. Demand has softened, particularly in major consumer markets such as China, and the rise of lab-grown alternatives has intensified competition. These challenges have led to a growing inventory of unsold diamonds, further complicating the company’s valuation and sale prospects. If Botswana succeeds in increasing its stake, it would mark a historic shift in the diamond industry positioning an African nation to assume majority control of a vertically integrated diamond enterprise with global reach.
