Botswana is courting the United Arab Emirates and Oman as potential partners in a bid to acquire a strategic stake in De Beers from Anglo American (LON:AAL), a move that could give the diamond-dependent nation greater influence over the industry’s future.
President Duma Boko said on Friday that Botswana was seeking dependable, reputable partners as Anglo American advances the sale of its 85% stake in the 138-year-old diamond producer. Boko travelled to Oman earlier this year after revealing discussions with a sovereign wealth fund there about financing a purchase of a controlling interest in De Beers.
“We are looking at reliable, trusted partners,” Boko told Bloomberg News. “The Omanis and the UAE have now claimed that spot. So any opportunity that comes whether in the diamond space or other, we will now be looking to engage with them.”
Botswana has also held discussions with neighbouring Namibia and Angola as it explores ways to increase its influence over De Beers.
Diamond slump
The push comes as Botswana seeks a greater role in managing an industry that remains central to its economy. Diamonds generate about 80% of the country’s exports and roughly one-quarter of gross domestic product. Botswana is also the world’s largest producer of rough diamonds.
The sector has been severely hit by falling prices, weaker Chinese demand, competition from lab-grown stones and uncertainty linked to US tariffs. The downturn has strained Botswana’s finances and contributed to a credit-rating downgrade by S&P Global Ratings this year.
Botswana already owns 15% of De Beers and holds pre-emptive rights over Anglo’s stake. However, analysts say the size of any future holding will depend on regulatory approvals, antitrust reviews and negotiations with competing bidders.
Anglo exit
Anglo is selling De Beers as part of a sweeping restructuring after fending off a $49-billion takeover attempt by BHP (ASX, LON: BHP) in 2024. The mining giant has since refocused on copper and iron ore and is shedding businesses outside those priorities.
Earlier this year, Anglo reduced De Beers’ book value to $2.3 billion, reflecting the prolonged weakness in diamond markets. The company mines most of its diamonds in Botswana, making the sale one of the most consequential transactions in the industry’s history.
MiningOnline
