Botswana aims to buy De Beers controlling stake

President of Botswana Duma Boko has stated that the country is looking to complete a deal to acquire a controlling stake in De Beers by the end of next month, according to Bloomberg.

It comes as Boko’s administration and other potential buyers are in continuing negotiations with the diamond company’s controlling shareholder Anglo American PLC.

Anglo is looking to divest its 85% stake in De Beers, the company which mines most of its gems in the southern African nation.

A spokesperson for Anglo, which wrote down the value of De Beers to $4.9 billion in February, told the outlet that the company “continues to engage” with Botswana “as our partner in De Beers.” The government already owns the remaining 15% of the diamond firm.

It is believed that Botswana is in discussions with a sovereign wealth fund in Oman among others to help finance an acquisition. The state is aiming to take its interest in De Beers above 50%.

Botswana owns 50% of Debswana, the main producer of rough diamonds for De Beers, which owns the remaining stake. Sales from the joint venture fell 46% last year, according to the central bank.

Diamonds, which account for 80% of export sales and about a third of government revenue, have been the bedrock of Botswana’s economy for decades. The downturn in gem prices is likely to result in the economy contracting for a second successive year in 2025.

The economic crisis prompted president Boko to declare a public health emergency on 25 August this year as the prolonged downturn in diamond sales has caused funds for medical supplies to dry up.

Furthermore, the government is in talks with the US to remove tariffs on diamonds, and the president expects to meet Commerce Secretary Howard Lutnick to discuss the matter.