Context and Negotiation Timeline
In September 2025, Botswana’s government, led by President Duma Boko, set an October 31 deadline to finalize negotiations aimed at securing majority ownership of De Beers. Currently, Anglo American holds 85% of the company, while Botswana owns 15%. The proposed acquisition would raise Botswana’s share above 50%, granting effective control over one of the world’s most influential diamond firms. The announcement followed months of economic strain from falling diamond revenues, which in August prompted the government to declare a public health emergency linked to financial pressures.
Motivations and Strategic Goals
President Boko has framed the acquisition as an issue of economic sovereignty, emphasizing that Botswana must move from being a supplier of rough diamonds to becoming a decision-maker in global markets. Control of De Beers would allow the country to better defend natural diamonds against synthetic alternatives, gain leverage in international supply chains, and reduce exposure to global price swings. With diamonds accounting for around 80% of export earnings and one-third of government revenues, Botswana’s economic stability is deeply tied to the sector, making greater ownership both a symbolic and structural safeguard.
Financing Challenges and Market Implications
The pursuit of majority ownership will require significant financing, estimated at US$1.7 billion based on Anglo American’s February 2025 valuation of De Beers at US$4.9 billion. The government is exploring multiple avenues, including collaboration with Oman’s sovereign wealth fund, talks with additional international partners, and leveraging its existing diamond assets. Analysts highlight that De Beers’ valuation remains complex due to competition from lab-grown diamonds and shifting consumer trends. If successful, Botswana’s acquisition would mark a turning point, shifting the balance of power in the diamond industry and positioning the nation as a true price-setter in global markets.