Namibia to participate in new De Beers deal alongside Botswana and Angola

President Duma Boko has announced that Namibia will participate in a new deal with De Beers alongside Botswana and Angola. The transaction involves the sale of Anglo American's 85% interest in De Beers to the Global Diamond Consortium. This development marks an important step in regional cooperation among major diamond-producing nations. The deal aims to secure greater strategic influence for Botswana in the diamond industry while expanding opportunities for domestic beneficiation and participation.

The new deal presents opportunities for Namibia to increase its stake in the diamond industry. De Beers is a 50/50 shareholder with the Namibian government in the Namibia Diamond Trading Company, Debmarine Namibia, and Namdeb land operations. The Namibian government's position on the sale of De Beers by Anglo American has not been officially announced. However, President Boko's announcement signals a new chapter in regional cooperation and diamond industry development.

The Global Diamond Consortium's transaction with Anglo American is intended to secure greater strategic influence for Botswana in the diamond industry. The deal also aims to expand opportunities for domestic beneficiation and participation across the diamond value chain. De Beers' Element Six business, which specializes in synthetic diamond technology, presents opportunities for advanced technology investment.

The announcement has sparked interest in Namibia's diamond sales agreement with De Beers, which expired in May. Independent Patriots for Change Member of Parliament, Rodney Cloete, had asked the government to explain Namibia's position on the proposed sale of De Beers and its potential impact on the country's diamond industry. The government has not provided an official response to Cloete's inquiry.

De Beers chief executive officer, Al Cook, recently expressed interest from countries with significant diamond industries, including Namibia, Botswana, and Angola, in taking equity stakes in De Beers. Cook envisaged the company's future ownership as a public-private partnership combining governments and private investors with deep knowledge of both diamond supply and consumer demand.

Local economist, Robin Sherbourne, has questioned the government's potential investment of N$3 billion in De Beers. Sherbourne wondered if it would have been a better investment for the government to buy out the Iranians and South Africans from Rössing Uranium, given that natural diamonds can compete with cheap mass-produced Chinese LGDs for GenZ consumers.

The new deal signals a significant development in Namibia's diamond industry, with potential implications for the country's economy. The government's participation in the deal alongside Botswana and Angola marks a new chapter in regional cooperation. The transaction is expected to secure greater strategic influence for Botswana in the diamond industry, while expanding opportunities for domestic beneficiation and participation.

Key points

• Namibia to participate in new De Beers deal alongside Botswana and Angola.
• The deal aims to secure greater strategic influence for Botswana in the diamond industry.
• The transaction presents opportunities for advanced technology investment through De Beers' Element Six business.