Botswana has announced plans to double its ownership stake in global diamond company De Beers from 15 per cent to 30 per cent under a proposed acquisition involving a consortium seeking to purchase Anglo American’s 85 per cent holding.
President Duma Boko disclosed the development while delivering the country’s State of the Nation Address in Gaborone on November 9, 2026.
The announcement represents a major development in Botswana’s strategy to strengthen its influence over the global diamond industry and increase the economic benefits it receives from its natural resources.
If the proposed transaction is completed, Botswana will become De Beers’ largest single shareholder, gaining greater influence over the company’s strategic direction and future operations.
The government has identified the Global Diamond Consortium as its preferred bidder for Anglo American’s 85 per cent stake.
The consortium is led by former De Beers chief executive Gareth Penny.
The proposed transaction has not yet been finalised, as the parties continue working towards binding agreements and the completion of the necessary processes.
Botswana seeks greater control of diamond resources
Diamonds have played a central role in Botswana’s economic development for decades.
The country is one of the world’s major natural diamond producers and has relied heavily on diamond exports to generate government revenue, foreign exchange and employment.
Its partnership with De Beers through Debswana, a joint venture between the government and De Beers, has been particularly important to the country’s mining industry.
Debswana operates some of Botswana’s largest diamond mines, including Jwaneng and Orapa.
These operations have contributed significantly to national revenue and supported the development of infrastructure, education and public services.
However, Botswana’s government believes that increasing its ownership of De Beers could provide additional influence over the international diamond business.
President Boko said the decision to increase the country’s stake followed careful consideration of Anglo American’s decision to sell its 85 per cent interest in the company.
The government reportedly assembled local and international advisers with expertise in finance, law, technical matters, taxation and diamond valuation to assess the available proposals and negotiate on behalf of Botswana.
The proposed increase from 15 per cent to 30 per cent would therefore represent an important change in the country’s relationship with De Beers.
Global Diamond Consortium emerges as preferred bidder
The Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, has been selected as Botswana’s preferred buyer for Anglo American’s stake.
The consortium is expected to involve a group of international diamond industry participants and investors.
The proposed transaction has attracted attention because of the importance of De Beers to the global natural-diamond market.
Anglo American announced plans to separate from De Beers in 2024 as part of a wider restructuring strategy.
The company had faced pressure from declining diamond prices, changing consumer demand and increasing competition from laboratory-grown diamonds.
The proposed sale therefore provides an opportunity for a new ownership structure to emerge.
Botswana’s support for the consortium is significant because the country already owns 15 per cent of De Beers.
Its proposed investment would increase that shareholding and give the government a stronger position in decisions concerning the company’s operations and long-term strategy.
However, the final ownership structure will depend on the successful completion of the proposed transaction.
Diamond market faces growing challenges
The proposed acquisition comes at a difficult time for the natural-diamond industry.
Demand for natural diamonds has experienced pressure from changing consumer preferences, weaker luxury spending in China and competition from laboratory-grown alternatives.
Laboratory-grown diamonds are produced using technological processes that replicate the conditions under which natural diamonds form.
They are generally less expensive than natural diamonds and have become increasingly popular among consumers seeking affordable jewellery.
Their growing acceptance has created additional competition for established diamond producers.
De Beers has consequently faced the challenge of maintaining the value and attractiveness of natural diamonds in an increasingly competitive market.
Botswana’s government is therefore entering the proposed transaction at a time when the industry is undergoing significant changes.
By increasing its ownership, the country could gain more influence over decisions concerning marketing, production, investment and the future direction of the business.
Namibia and Angola expected to participate
The proposed ownership arrangement is also expected to involve other African diamond-producing countries.
President Boko indicated that Namibia and Angola would participate in the broader arrangement, although detailed terms of their involvement were not provided.
Their potential participation could introduce a stronger regional dimension to the ownership structure of De Beers.
Both countries are important players in Africa’s diamond industry and have an interest in ensuring that mineral resources contribute more directly to domestic economic development.
Greater involvement by African producer countries could also strengthen cooperation on diamond production, investment and international market strategy.
However, the precise ownership percentages and financial commitments of the other countries remain subject to further clarification.
Botswana explores opportunities beyond traditional diamonds
The proposed De Beers transaction also comes as Botswana looks towards expanding the economic value of its diamond resources beyond traditional jewellery markets.
President Boko highlighted the potential role of Element Six, De Beers’ synthetic-diamond business, in emerging technology industries.
Synthetic diamonds have important industrial applications because of their hardness, thermal conductivity and other physical properties.
They are used in specialised equipment and may support industries involving advanced manufacturing, electronics, computing and data centres.
The government has also referred to a planned $600 million United States plant involving Element Six.
The development could create opportunities for Botswana to benefit from the growing demand for industrial diamonds and advanced technology materials.
This suggests that the country’s interest in De Beers extends beyond its traditional role as a diamond producer.
Economic implications for Botswana
Increasing its stake in De Beers could provide Botswana with greater influence over a company that has played a major role in its economic development.
However, the investment also comes with financial and commercial considerations.
The natural-diamond industry remains exposed to fluctuations in global demand, commodity prices and changes in consumer preferences.
Botswana will therefore need to assess the financial risks associated with increasing its ownership.
The success of the proposed arrangement will depend on the final acquisition terms, the company’s future performance and the ability of its new shareholders to respond to changes in the global diamond market.
For Botswana, the transaction represents an opportunity to strengthen national participation in the diamond industry while exploring new areas of industrial growth.
If completed, the proposed deal could mark a major shift in De Beers’ ownership structure and increase the influence of African diamond-producing countries over one of the world’s most recognised diamond businesses.
