Botswana is nearing an agreement that could increase its stake in diamond giant De Beers to approximately 25%, as the southern African nation seeks a stronger position in one of the world’s most prominent diamond businesses.
Bloomberg News reported on Tuesday, citing people familiar with the matter, that the Global Diamond Consortium, the preferred bidder for De Beers, is close to reaching an agreement with the Botswana government. Reuters said it could not independently verify the report.
The consortium, led by former De Beers Chief Executive Gareth Penny, was named the preferred bidder in July as the sale process for the diamond producer gathered momentum.
Botswana currently holds a 15% stake in De Beers. An increase to about 25% would strengthen the government’s ownership position in an industry that remains central to the country’s economy and export earnings.
De Beers was put up for sale by parent company Anglo American in May 2024 as part of a broader corporate restructuring. The move came amid weak diamond prices and intensifying competition from laboratory-grown diamonds, which have put pressure on the natural diamond market.
Botswana is not the only African country interested in securing a stake in the business. Namibia and Angola, alongside private investors, have also expressed interest in De Beers, highlighting the strategic importance of the company to diamond-producing nations across the continent.
A stronger Botswana stake could give the government greater influence over the future direction of De Beers and its role in the country’s diamond industry. However, the final terms of any agreement have yet to be confirmed.
