Botswana backs Global Diamond Consortium, plans 30% stake in De Beers

Anglo American’s 85% holding has been up for sale since 2024

President Duma Boko told Parliament on Monday that Botswana will double its stake in De Beers to 30% under a proposed transaction in which the Global Diamond Consortium would buy Anglo American’s shares in the company. The move would make Botswana the largest single shareholder in De Beers, the world’s leading diamond company, Boko said.

Botswana’s endorsement is the piece that can make the purchase proceed. Anglo American put its 85% stake in De Beers up for sale in 2024 as part of a broader restructuring focused on minerals expected to boom from the transition to green energy and a downturn in the diamond market. As De Beers’s other shareholder, Botswana’s backing of the Global Diamond Consortium is key for the deal to go forward.

The purchase by the consortium, which is led by former De Beers CEO Gareth Penny, has not been finalized.

Boko said fellow southern African nations Namibia and Angola would also be involved in the deal for De Beers, though he gave no details. “For the first time, the great diamond producing nations of our region will sit together at the ownership table of the company that markets their diamonds, united by a shared belief that local resources should bring local prosperity,” he said.

Botswana has long had a partnership with De Beers to operate its largest diamond mines through the Debswana joint venture. The country is one of the biggest natural diamond producers in the world.

The stake increase comes after a year of contraction. A big dip in sales caused Botswana’s diamond-dependent economy to contract last year, and the country is looking to double down on the stones.

The broader natural diamond industry is undergoing a downturn, largely because of competition from artificial lab-grown stones and a decline in luxury spending in China, according to analysts.

Several elements of the transaction remain unsettled. Boko gave no detail on how Namibia and Angola would take part, and the consortium’s purchase still has to be completed before any change in ownership takes effect.