Botswana

Botswana’s Strategic De Beers Takeover Could Redefine Global Diamond Industry

Gaborone, Botswana — November 2025:
Botswana’s move to secure majority control of De Beers, the world’s most iconic diamond company, marks a turning point in both African resource ownership and the global diamond market. The initiative, driven by President Duma Boko, represents one of the most significant sovereignty shifts in modern mining history, with potential to reshape how nations manage their natural wealth.

Why Botswana’s De Beers Acquisition Matters

Diamonds remain the cornerstone of Botswana’s economy — contributing nearly 30% to GDP and 80% of export earnings. Through its long-standing Debswana partnership with De Beers, the country has benefited from steady revenues but limited control over the strategic direction of its most vital industry.

Now, Botswana aims to change that. By pursuing a majority stake, the government seeks greater influence over production, marketing, and profit allocation — a shift that could transform the balance of power in the global diamond trade.

Current Ownership and Partnership Structure

Currently, Anglo American holds 85% of De Beers, while Botswana owns 15% through Debswana. Though this structure has delivered stability and growth, it also leaves Botswana as a minority player in decisions that directly affect its economy.

With Anglo American now restructuring its portfolio and considering divestment, Botswana has seized a rare opportunity to negotiate for majority control — aligning national interest with long-term sustainability and independence.

Economic Impact and Strategic Motivation

Diamonds have built Botswana’s success story, funding education, infrastructure, and healthcare. Yet, with rising competition from lab-grown diamonds and volatile global demand, the government recognises the need to safeguard revenue and ensure future resilience.

Majority control would allow Botswana to:

Align De Beers’ strategy with national priorities
Increase direct revenue and value capture
Enhance job creation through local beneficiation
Strengthen resilience against external market shocks

Understanding the De Beers Restructuring Opportunity

Anglo American’s decision to offload assets amid global portfolio optimisation has opened the door for Botswana’s historic bid. Market analysts suggest that De Beers’ valuation — affected by softer diamond demand — may now be more accessible, creating a once-in-a-generation acquisition opportunity for Botswana.

International sovereign wealth funds, including potential partners from Oman, have expressed interest in co-financing the acquisition, signalling global confidence in Botswana’s governance and the enduring value of natural diamonds.

Regional Competition and Cooperation

Botswana’s bid faces competition from Angola’s Endiama EP, which has also expressed interest in acquiring Anglo American’s stake. However, diplomatic discussions between Botswana and Angola hint at possible collaboration, with joint African ownership of De Beers emerging as a strategic alternative that could reinforce continental resource sovereignty.

Global Diamond Market Implications

If successful, Botswana’s acquisition would mark a paradigm shift:

African Resource Sovereignty: Establishing Botswana as a model for other resource-rich nations pursuing local ownership.
Supply Chain Control: Enhancing Africa’s ability to influence global pricing, production, and distribution strategies.
Market Stability: Strengthening natural diamond positioning against synthetic competitors through unified African leadership.

With potential to contribute over 35% to Botswana’s GDP and maintain its dominance in global exports, majority ownership could significantly enhance the nation’s economic resilience and international influence.

Challenges and Market Outlook

The acquisition faces hurdles, including valuation complexities, competitive bidding, and global demand fluctuations. Moreover, the diamond industry continues to navigate pressures from lab-grown alternatives, changing consumer preferences, and macroeconomic uncertainties.

Nevertheless, Botswana’s strategy demonstrates forward-thinking leadership — leveraging its expertise, governance stability, and long-term vision to secure sustainable control over its most valuable resource.

President Duma Boko’s Vision

“Government will leverage a majority stake. Concrete steps are under way towards the acquisition of Anglo American shares in De Beers,”
— President Duma Boko, addressing Parliament, November 2025

His statement underscores Botswana’s commitment to advancing economic independence while setting a precedent for African nations reclaiming control of their mineral wealth.

What This Means for the Future

Should Botswana succeed, it will become the first African nation to hold majority ownership of the world’s largest diamond company — a move that could redefine the global diamond landscape for decades to come.

Beyond national pride, this transition represents a strategic realignment of power, giving Botswana direct control over pricing, marketing, and supply chain dynamics in the international diamond market.

Frequently Asked Questions

When will the Botswana De Beers deal be finalised?
Negotiations are ongoing through late 2025. Completion depends on final agreements with Anglo American and potential co-investors.

How much will Botswana pay for majority control?
Financial details remain confidential, with valuations influenced by current market conditions and strategic negotiations.

Will this affect global diamond prices?
Yes — greater African control over supply could strengthen natural diamond pricing and reinforce consumer confidence in ethically sourced stones.

About DCLA

The Diamond Certification Laboratory of Australia (DCLA) is Australia’s official CIBJO-recognised laboratory, providing independent grading, authentication, and certification of natural diamonds. DCLA continues to report on global developments shaping the natural diamond industry, ensuring transparency and consumer confidence worldwide.

Disclaimer: This article is intended for informational and educational purposes only. The views and interpretations expressed do not necessarily reflect those of the Diamond Certification Laboratory of Australia (DCLA). All information is based on publicly available data and current market reports at the time of publication. DCLA does not provide financial, investment, or legal advice. Readers are encouraged to conduct their own research or consult with qualified professionals before making decisions related to diamond investment, trading, or acquisition.

De Beers Sale: Botswana Plus One or Two Buyers

Anglo American CEO Duncan Wanblad says the sale of De Beers will involve one or two shortlisted buyers alongside the government of Botswana, rather than the usual two-round selection process.

Wanblad (pictured) told the Financial Times Metals and Mining Summit (held in London and virtually): “This isn’t going to be the classical first round, second round sale process that you would ordinarily receive for businesses of this type.

“What we are planning to do is now move into the second round with one or two of the potential selected buyers that came through the first round with us and work with the government of Botswana in finalising an agreement that works not only for the potential buyers, but also for Botswana.”

Anglo is expected to raise $3bn to $4bn from the sale of its 85 per cent stake in the loss-making diamond miner. The remaining 15 per cent is owned by the government of Botswana, which wants to secure a majority holding, and to do so by the end of this month.

Angola’s state-owned mining company Endiama has submitted a fully financed offer for a minority stake, as part of a pan-African proposal, which would include Botswana, Namibia, and South Africa.

Former De Beers CEOs Bruce Cleaver and Gareth Penny are leading bidding consortia and there is speculation about interest from Qatari and other Gulf investors.

Source: IDEX

Major opportunity for the diamond business to return to old strengths, says luminary

Botswana is seeking a greater interest in De Beers, and Angola is seeking an interest too. To the mind of diamond luminary Martyn Charles Marriott, this could be an opportunity to return to old strengths and disciplines.

In an article on the website of the International Diamond Manufacturers, Marriott cautions Botswana about going it alone and falling into the trap of yet again putting all its eggs into one basket.

Marriott notes that the current deal Botswana has with De Beers is fantastic in that 80% of mine profits go to Botswana – a level that far surpasses anything in the mining industry anywhere in the world.

Marriott expresses the view that the debate now under way about the future of De Beers presents an opportunity for a return to the discipline and control of the natural diamond market.

Many recall that the best economic viability of the diamond industry took place in the days when it had a stockpile and a quota approach, which kept supply and demand in crucial balance.

In addition, large sums were spent on unforgettable advertising campaigns and the entrenchment of the global diamond engagement ring tradition.

Collaboration is what gave diamonds their old strength; fragmentation is what is causing their current weakness.

Marriott recalls how collaboration led to flow of alluvial diamonds from West Africa being absorbed by the diamond buying offices that were created at source. In addition, Russia recognised the way in which the collaborative approach was good for everyone, from diamond miners through to diamond cutters, diamond traders, and diamond consumers.

It was Marriott, as the then manager of De Beers Dicor, who persuaded the government of Sierra Leone about the benefits of collaboration. This was ahead if his departure from De Beers, which coincided with the discovery of diamonds in Botswana, where he played a key consultancy role from 1970 to 1983.

It was then that Botswana was persuaded that the Central Selling Organisation system could uplift its economy – but with the caveat that the diamonds had to be properly sorted and valued, and production at Botswana’s Orapa was increased to a level that helped Botswana secure a favourable quota. It was also Marriott who initially proposed that the future development of the mines in Botswana should be by an equally shared 50/50 company.

For more than a dozen years, Marriott was a member of Botswana’s negotiating team with De Beers, which secured the very high level of profits that would accrue to the Botswana government from the development of its diamond mines. During the joint development of Jwaneng, he coordinated Botswana’s inputs into the project.

Interestingly, in 1980, even the Australians were persuaded about the merits of the Central Selling Organisation for the Argyle mine.

From 1985 through to the end of the century, Marriott was heavily involved in the restoration of the Angolan diamond industry, as consultant and valuer to Endiama, the article in on the website of International Diamond Manufacturers recalls.

In this instance, as production in Angola was then small, Marriott initially advocated sales by tender amid the build up a successful sales procedure that was eventually undermined by corruption.

The establishment of the Kimberley Process also came about with Marriott help, but unfortunately, in 1986, the diamond world began to disrupt. Argyle and De Beers ceased their cooperation. The Russians became increasingly independent, and Canadian mines opted to market their production separately.

Now synthetic diamonds are adding to the competition.

Meanwhile, Martyn’s two sons, Luke and Benjamin Marriott, are continuing worldwide valuing and have developed eValuer, a system of pricing and valuing diamonds.

“I relate all the above to demonstrate the experience that leads me to write this article concerning a possible future for the natural diamond industry based on cooperation between the African producers,” Marriott writes.

“I must admit that I found no enthusiasm for my ideas for African cooperation during my time working for the Government of Botswana. Moreover, at the end of my work there, I was at odds with its policy. I did not believe in the move towards local processing. I felt it unlikely that local establishments could compete with the industry as it stood, particularly the Indians. I preferred a sovereign wealth fund, further development of the cattle industry, tourism, and concentration on developing other industries. I felt that the pressure on De Beers for local processing could equally well be used on them and Anglo American to develop other industries.

“However, times change. Botswana is seeking a greater interest in De Beers, and Angola is seeking an interest too. To my mind, this could be an opportunity to return to old strengths and disciplines. Some sort of OPEC for diamonds that could provide a basis for the future,” Marriott proposes.

Source: Miningweekly

Okavango: “It wasn’t an Emergency Tender”

Okavango, Botswana’s state-owned diamond company, says its planned sale of 1m rough carats last month was not “an emergency tender”.

And it says the fact that it didn’t sell a single stone didn’t mean it was a failure. Rather, it was the result of a “deliberate and prudent decision to withhold certain goods”.

The “closed” tender on 25 September was reportedly aimed at raising revenue for the government (something the company denies) which had been severely hit by the slump in demand for natural diamonds. But buyers weren’t prepared to pay the reserve prices.

“Withholding goods in the short term ensures better outcomes for the market,” Okavango Diamond Company’s managing director Mmetla Masire (pictured) said in a statement.

“We will not join the race to the bottom on prices, our focus is on protecting the integrity and enduring value of Botswana’s diamonds.”

It said the tender was scheduled back in July and was part of regular sales management, not a last-minute revenue-raising emergency.

The ad hoc tender was a marked departure from the norm. ODC usually holds about 10 scheduled online spot auctions annually for registered buyers, typically raising at least $60m.

The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.

Source: IDEX

Botswana: Zero Sales in Emergency 1m-carat Tender

Okavango, Botswana’s state-owned diamond company, failed to sell a single stone in an unprecedented “emergency” tender of 1m carats last Thursday 25 September.

The auction was aimed at raising revenue for the government, which had been severely hit by the slump in demand for natural diamonds, but buyers weren’t prepared to pay the reserve prices.

Okavango Diamond Company (ODC) has canceled a number of tenders since November 2024 because of weak demand. It had planned to hold two further ad hoc tenders by the end of this year, but may now have to reconsider.

ODC usually holds about 10 scheduled online spot auctions annually for registered buyers. Last week’s ad hoc tender was a marked departure from the norm.

ODC spokesman Dennis Tlaang said ahead of the tender that it wouldn’t be selling at prices that would have “a negative impact on the market”.

The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.

Source: IDEX

Global Diamond Market Turmoil: Botswana Declares Health Emergency, India Faces Tariff Shock, Zimbabwe Strengthens Ties with India

The volatility in the global diamond industry is beginning to have severe humanitarian and economic consequences across producer and manufacturing nations. Recent developments highlight the fragility of economies that rely heavily on diamonds, and the urgent need for market stability.

Botswana: Diamond Slump Triggers Public Health Emergency

Botswana, the world’s leading diamond producer by value, has declared a public health emergency after revenues from diamond sales halved in 2024. Production is expected to fall by at least 25 per cent this year, leaving the government with severe financial shortfalls.

Earlier today (25 August), President Duma Boko announced the emergency, citing a critical shortage of essential medicines. To address the crisis, 5 billion pula (USD 348m) has been reallocated from other government funds, while the state-owned Botswana Development Corporation has pledged 100 million pula (USD 7.3m). The president has also appealed to pension and insurance funds for support.

The military has been mobilised to distribute urgently needed medical supplies to rural areas. The Ministry of Health has identified shortages in medicines for hypertension, cancers, diabetes, asthma, eye conditions, tuberculosis, sexual and reproductive health, and mental health.

Although President Boko has referred to “market challenges” in official statements, local and international media have directly linked the crisis to collapsing diamond revenues, underlining the nation’s heavy dependence on the industry.

India: Tariffs Threaten 150,000 Diamond Jobs

In India, which processes the vast majority of the world’s diamonds, the industry faces a fresh crisis as the United States prepares to double tariffs on polished stones from 25 per cent to 50 per cent on 27 August.

The Diamond Workers Union Gujarat (DWUG), which represents a large section of Surat’s workforce, has warned Prime Minister Narendra Modi that the tariff hike could wipe out 150,000 to 200,000 jobs – nearly a fifth of India’s diamond workforce.

DWUG is urging the government to revive the Ratnadeep Scheme, originally introduced in 2008–09 during the global financial crisis. The scheme provided retraining opportunities and a daily stipend for unemployed diamond workers.

The union has also raised alarm over rising distress among workers, noting that at least 80 unemployed diamantaires have taken their lives in the last two years.

Zimbabwe: Building Closer Trade Links with India

While Botswana and India face mounting pressures, Zimbabwe is positioning itself to deepen diamond trade relations with India.

Vice President Constantino Chiwenga recently visited Surat to explore direct trade agreements that would bypass intermediaries. He also invited Indian investors to consider joint ventures in Zimbabwe’s mineral processing and industrial sectors.

With US tariffs on Zimbabwean diamonds set at 15 per cent – compared to India’s new 50 per cent rate – Zimbabwe sees an opportunity to attract Indian buyers and investors.

During the visit, Chiwenga met with leaders of Hari Krishna Exports to discuss partnerships aimed at moving Zimbabwe further up the value chain, from rough exports to local cutting, polishing, and manufacturing. Such developments could create significant employment opportunities, build local expertise, and reduce poverty in diamond-producing communities.

The Bigger Picture

These three stories highlight the immense global impact of diamond market fluctuations. For producer nations like Botswana and Zimbabwe, as well as manufacturing hubs like India, the stakes are not merely financial – they are deeply social and humanitarian.

The current instability underscores the importance of transparent, sustainable, and diversified diamond economies, alongside stronger international collaboration, to secure both industry resilience and the livelihoods of millions who depend on it.

De Beers Sale on Right Track, says Botswana Vice President

Botswana’s vice president says he’s confident that a new buyer will be found for De Beers by the end of the year – and he hinted that the government could substantially increase its own stake, currently 15 per cent.

Ndaba Gaolathe (pictured) said there were countries, funds and companies that all had a “deep interest” in acquiring the 85 per cent share being offered by Anglo American, and he said he was confident they were “on the right track”.

The UK-based miner is selling off De Beers, its diamond division, together with other assets, to focus on copper, its most profitable activity.

Anglo has written down the value of De Beers twice in just over a year, as sales slump and the company descends from profit to loss. It is now valued at $4.1bn, a fraction of the value when Anglo acquired overall control of the company in 2012.

Gaolathe, quoted by Bloomberg News yesterday (30 April) after an interview in Washington, USA, said the Botswana government could increase it take in De Beers (currently 15 per cent) to as much as 50 per cent.

Anglo is seeking to a sale or IPO of De Beers by the end of this year.

Source: IDEX

Botswana economy hit hard as diamond slump deepens

Botswana is bracing for deeper spending cuts and a widening budget deficit as a prolonged slump in diamond demand pressures its economy, even as the country signals interest in expanding its stake in diamond giant De Beers.

Vice President and Finance Minister Ndaba Gaolathe said the government is preparing to make “drastic” fiscal adjustments to stay afloat, including slashing expenditures and boosting tax revenues.

“The first thing we need to do, obviously, is to live within our means,” Gaolathe said in Washington. “That means cutting spending — doing away with what we believe is some of the fat.”

Diamonds make up a third of Botswana’s revenue and lead its exports, but a prolonged drop in global demand since mid-2023 has forced the government to raise its budget deficit forecast to 9% of GDP — the highest since the pandemic. The downturn has also led to a 3% contraction in the economy this year.

With foreign reserves under pressure, officials plan to cut costs by trimming the government vehicle fleet and curbing travel. They’re also moving to boost revenue through stricter tax enforcement and a new digital transaction levy set to launch in September.

Despite fiscal stress, Gaolathe said Botswana is reluctant to seek financing on international markets, preferring concessional loans. “Let’s borrow where it’s cheapest,” he said.

Bigger De Beers stake
The diamond downturn has also accelerated changes in the industry. Anglo American (LON: AAL), which owns 85% of De Beers, has been seeking a buyer for the iconic diamond company. Botswana, which holds the remaining 15% and is De Beers’ primary diamond source, says it wants a greater say in the sale.

“We are very confident that partners are coming forward,” Gaolathe told Bloomberg, noting interest from countries, funds and companies with “deep interest” in the industry. Botswana wants any new owner to be financially strong and committed to the diamond business long-term — and said it is open to increasing its stake to as much as 50%.

The government and De Beers recently signed a 10-year deal to fund global marketing aimed at reviving demand for natural diamonds, which have been losing ground to lab-grown alternatives. New US tariffs on Botswana’s diamonds have since added uncertainty to any near-term rebound.

“High tariffs on our diamonds will have a deleterious effect on us,” Gaolathe warned. The Bank of Botswana expects only a “muted recovery” this year.

Source: Mining.com

Ousted Masisi Claims De Beer Funded Botswana’s Opposition

Botswana’s former president Mokgweetsi Masisi has accused De Beers of funding the party that ousted him from power last November – because he was taking too tough a stance on the critical 10-year diamond deal.

He claims the mining company actively supported the Umbrella for Democratic Change (UDC) which ended 58 years of uninterrupted rule by the Botswana Democratic Party (BDP).

Masisi (pictured) also claims De Beers tried to influence internal politics within the BDP to appoint a more favourable leader and that it deliberately stalled on the signing of a full diamond sales agreement because of tax disputes.

De Beers and the Botswana government agreed the principles of a sales agreement, mining licenses and a package of measures to boost the country’s economy under Masisi, but the deal remained unsigned during his tenure.

It was finally inked three months after he was replaced as president by Duma Boko.

De Beers and the UDC have categorically rejected Masisi’s claims. De Beers said: “We do not provide financial or other support for political purposes to any politician, political party or related organisation, or to any official of a political party or candidate for political office, in any circumstances, either directly or through third parties.”

A UDC spokesperson dismissed Masisi’s claims as outlandish, and challenged him to provide evidence.

Source: IDEX

Botswana’s Economic Outlook Now Negative, says S&P

Botswana's economy is heavily reliant on diamonds.

Botswana’s economic outlook has been downgraded from stable to negative by S&P Global Ratings (S&P) on account of low demand for diamonds.

It forecasts a steep rise in government debt unless there is a substantial increase in diamond prices or significant fiscal intervention.

Botswana’s economy is heavily reliant on diamonds. They account for around 80 per cent of its export earnings and a third of total budget revenues.

De Beers and the Botswana government finally reached agreement last month on the long-term mining and rough sales deals, but sales by their joint venture, Debswana, were down by 52 per cent for the first three quarters of 2024, and there a few signs of a sustained recovery in demand.

Despite downgrading its economic prospects, S&P left Botswana’s long-term foreign and domestic currency sovereign credit rating unchanged at BBB+ and its short-term rating at A-2.

“The negative outlook is on account of S&P’s expectation that weak global demand for diamonds and depressed prices will continue to suppress Botswana’s exports and fiscal position, therefore, delaying government’s fiscal consolidation agenda and the rebuilding of buffers,” said the Bank of Botswana in a statement.

It highlighted the fact that S&P said the newly-elected government’s commitment to reducing unemployment, diversifying the economy and increasing social support, while maintaining fiscal prudence, also had a positive impact to the ratings.

Source: IDEX