Botswana Seeks Majority Control of De Beers in $4.9 Billion Deal

Botswana Seeks Majority Control of De Beers in $4.9 Billion Deal

Botswana, Africa’s largest diamond producer, is moving to acquire majority control of De Beers, the world’s leading diamond company, by the end of October, President Duma Boko confirmed on Monday.

The southern African nation currently owns a 15% stake in De Beers, while Anglo American Plc controls the remaining 85%. Anglo has been looking to divest as part of a restructuring program launched 16 months ago, amid a prolonged slump in the natural-stones market.

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Market Pressure and Valuation

The rise of lab-grown diamonds has reshaped the industry, pushing down demand and prices for natural stones. Earlier this year, Anglo American wrote down De Beers’ valuation to $4.9 billion, underscoring the market challenges facing the century-old company.

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Although Anglo has explored other options—including approaches from former De Beers executives, as well as the possibility of an IPO or demerger—the Botswana government has emerged as the frontrunner to secure a controlling stake.

Financing the Takeover

President Boko revealed that the government is in talks with potential partners to finance the acquisition, including Oman’s sovereign wealth fund. Negotiations are ongoing, but Botswana’s diamond-rich economy makes the deal a strategic priority.

Diamonds account for around 80% of Botswana’s exports and roughly a third of state revenue. However, the industry’s downturn has strained the country’s finances. S&P Global Ratings projects that Botswana will face a second consecutive year of economic contraction in 2025, adding urgency to the government’s push to stabilize its key sector.

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In August, Boko declared a public health emergency after falling revenues squeezed government spending, underlining how central diamonds remain to the nation’s economic survival.

Strategic Importance

Securing majority control of De Beers would mark a historic shift, giving Botswana greater influence over the global diamond supply chain. For Gaborone, the move represents more than financial investment—it is also about reinforcing the long-term value of natural stones in the face of synthetic competition.

Industry observers say the deal could strengthen Botswana’s negotiating power in global markets and provide the government with a stronger platform to diversify its economy while safeguarding its diamond legacy.

For Anglo American, the sale would help streamline operations and unlock value for shareholders. But for Botswana, majority ownership of De Beers would be nothing short of transformative—cementing the country’s place at the center of the global diamond industry

Source: Accra Street Journal

Last Updated on March 9, 2026 by Samuel Kwame Boadu

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