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    Home » Botswana Settles for a Bigger Minority in De Beers
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    Botswana Settles for a Bigger Minority in De Beers

    October 14, 20263 Mins Read
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    Honourable Bogolo Joy Kenewendo, Minerals and Energy minister in Botswana
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    Botswana is close to an agreement with the consortium bidding for De Beers that would raise its stake in the diamond miner to about 25% from 15%, clearing one of the last obstacles to Anglo American’s long-running exit from the business, Bloomberg reported, citing people familiar with the talks.

    The Global Diamond Consortium (GDC), led by former De Beers chief executive Gareth Penny and including the governments of Namibia and Angola, was named preferred bidder in July. Terms with Botswana, home to De Beers’ most important mines, had remained unresolved. The sources said negotiations are continuing and no agreement has been finalised. Anglo, GDC and Botswana’s presidency declined to comment.

    Under the proposed structure, Botswana, Namibia and Angola would together hold less than 50%, leaving De Beers under the control of private investors, a condition for some consortium backers. That would mark a shift from President Duma Boko’s earlier stated aim of majority control. Vice-president Ndaba Gaolathe told Bloomberg TV last month only that the state wanted more than 15%.

    The numbers behind the De Beers sale

    ItemFigure
    Botswana’s current stake in De Beers15%
    Proposed Botswana stakeAbout 25%
    Combined stake of Botswana, Namibia and AngolaBelow 50%
    Botswana’s share of Debswana50%
    Anglo carrying value of De Beers (Feb 2026)$2.3bn (R37.8bn)
    Sale price discussedAbout $1bn (R16.5bn)
    Diamonds’ share of Botswana government revenueAbout one-third

    Anglo has sought to sell De Beers since fending off an approach worth almost $50bn (R822bn) from BHP in early 2024. The process has been slowed by a deep downturn in the diamond market. Anglo has written down De Beers three times in three years, cutting its carrying value to $2.3bn (R37.8bn) in February, and Bloomberg reported in July that it had discussed a price of about $1bn (R16.5bn). Further payments linked to the business’s performance after completion are also expected.

    The industry has been hit by a fall in Chinese luxury spending after strong pandemic-era sales, the growing share of laboratory-grown stones, trade tensions and geopolitical shifts. Bloomberg noted signs of recovery in recent months, which could make the timing favourable for the buyers.

    The outcome matters greatly for Botswana. Diamonds account for roughly one-third of government revenue and about three-quarters of foreign-exchange earnings. The economy contracted by about 1% in 2025, and Reuters reported that the country held a diamond stockpile of 12 million carats at the end of December, nearly double its allowable inventory level of 6.5 million carats.

    Botswana also holds 50% of Debswana, its mining joint venture with De Beers, which produces most of the country’s diamonds. A sales agreement concluded with the previous government allows the state-owned Okavango Diamond Company to take a rising share of Debswana’s output, reaching 50% by the end of the ten-year pact.

    For Anglo, an agreement would allow the sale to move to its final stages after a process that has run for more than two years.

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