Botswana is exploring the possibility of increasing its stake in
De Beers, President Duma Boko said on November 10 in his State of
the Nation Address in Gaborone. The move comes as Angola has also
signalled interest in acquiring shares in the diamond producer,
according to Reuters reporting.
Botswana currently holds 15% of De Beers through the Debswana
joint venture, which is shared 50/50 with De Beers and supplies
about 70% of the company’s annual rough diamond output. Boko
described De Beers as a strategic national asset, despite a
downturn in global diamond demand and prices over the past
year.
“It is in this regard that concrete steps are underway towards
the acquisition of Anglo American’s shares in De Beers,” Boko said,
without disclosing transaction structure, valuation method or
timetable.
Anglo American (LON:AAL; JSE:AGL) owns 85% of De Beers and has
been considering a sale of the stake, as part of a corporate
realignment to prioritise copper and other energy-transition
minerals. Reuters has reported that Anglo American values De Beers
at around $4.9bn, though any sale price would depend on market
conditions.
The prospect of Angola seeking a stake arose after a meeting
between the two countries’ mining ministers in Gaborone on November
7, which Reuters reported included discussions about
possible share acquisition. Angola has not announced a formal bid,
and Botswana has avoided characterising the matter as
competitive.
Analysts say any increase in Botswana’s ownership would likely
require state-backed financing, participation by sovereign
investment funds, or external partners, given the scale of the
stake involved. It also remains unclear whether Botswana aims for a
majority position or a larger but still joint ownership model.
Diamond sales remain central to Botswana’s export earnings,
fiscal revenue and foreign exchange reserves, even as the
government seeks to broaden the mineral economy. Boko said diamonds
will remain a core driver of growth over the medium term.
Further developments will depend on valuation negotiations,
regulatory approvals, financing capacity and Anglo American’s
divestment timetable.
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