Botswana Plans to Double Stake in De Beers to 30%

Botswana is planning to double its stake in De Beers from 15% to 30% as part of a proposed transaction involving Anglo American's 85% holding. President Duma Boko announced the plan, which would make Botswana De Beers' largest single shareholder, potentially giving it greater influence over the company's strategic direction. The Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, has been selected as the preferred bidder for Anglo American's stake.

The proposed transaction involves the governments of Namibia and Angola, while Oman has been identified as a participant in discussions. Companies such as diamond manufacturers Diarough, Pluczenik and Grandview Klein Diamonds, alongside jewellery businesses like Signet and Richemont, are also reportedly involved in negotiations. However, the final ownership structure and distribution of shares have not been disclosed, and the financial terms remain under negotiation.

The proposed consideration for Anglo American's 85% holding is approximately $1 billion, comprising $750 million upfront and $250 million deferred. A further $500 million capital injection into De Beers has also been discussed. These are reported proposals, not confirmed final commitments. Anglo American has said it will continue working with Botswana, other governments and the consortium towards binding transaction documents.

The timing of the proposed transaction is significant, as Botswana's economy has been under pressure from the prolonged diamond-market downturn. Rough diamond prices fell 23%, from $129 per carat at the end of 2024 to $99 a year later. The country held approximately 12 million carats in diamond inventories at the end of December 2025, nearly twice its 6.5-million-carat target.

Mineral revenues were estimated at 10.3 billion pula for the 2025–26 financial year, well below the historical annual average of 25.3 billion pula. Moody's downgraded Botswana's sovereign credit rating from Baa1 to Baa2 in September 2026, citing pressure on public finances. The agency warned that further deterioration could follow if the government materially increased its investment in De Beers through debt-financed arrangements.

De Beers' own financial performance illustrates the commercial risks. In 2025, the company recorded an underlying EBITDA loss of $511 million, compared with a $25 million loss in 2024. Production fell 12% to 21.7 million carats, while its average realised price declined 7% to $142 per carat. In the first half of 2026, revenue fell to $1.6 billion from $2 billion in the corresponding period a year earlier.

The proposed investment also needs to be understood alongside Botswana's existing relationship with De Beers through Debswana, the 50–50 joint venture responsible for much of the country's diamond production. A larger De Beers shareholding would give Botswana a greater interest in an international business with mining, marketing and technology operations across several markets, and potentially provide opportunities for local procurement, skills development, technology transfer and value addition.

Key points

• Botswana plans to double its stake in De Beers to 30% for greater influence in the global diamond industry.
• The proposed transaction is valued at approximately $1 billion.
• The investment's success will depend on factors like voting rights, board representation and the company's performance.