• Botswana aims to take full control of De Beers as Anglo American plans to divest.

• The country already holds 15% and plays a central role in De Beers' operations.

• Analysts warn the move could expose the government to operational and financial risks.

Botswana plans to pursue a majority stake in diamond giant De Beers, Mines Minister Bogolo Kenewendo told the Financial Times on Wednesday, 23 July. She said Gaborone would find it “difficult to achieve” any sale of the company that does not include its consent, reinforcing the government's ambitions for "total control" of the miner.

De Beers, the world’s top diamond producer by value, is currently 85% owned by Anglo American. The Botswana government holds the remaining 15%. But since Anglo American announced in May 2024 its intention to spin off De Beers as part of a strategic portfolio overhaul, Botswana has moved to position itself as a lead buyer.

Former president Mokgweetsi Masisi publicly supported the idea of increasing Botswana’s stake in 2024. His successor, President Duma Boko, reiterated the government’s interest earlier this year, telling Reuters in February that “negotiations were going well.”

This latest statement from the mines minister confirms that Botswana is no longer aiming for a marginal increase—but rather majority ownership. Such a deal would give the government control of a strategic national asset and the entire value chain, including marketing, according to Kenewendo.

Botswana is a core pillar of De Beers’ operations, contributing approximately 70% of its global diamond production. The 50/50 joint venture between De Beers and the government, known as Debswana, runs the country’s key mines, including Jwaneng and Orapa.

If successful, the acquisition would grant Botswana greater control over the management of its mineral wealth. But the government has yet to disclose the full scope, structure, or timing of its bid.

The move comes as the global diamond market struggles with prolonged price declines. The International Monetary Fund projects Botswana’s economy to contract by 0.4% in 2025, largely due to falling diamond revenues. The diamond industry accounts for roughly 25% of GDP and 80% of the country’s export earnings.

Analysts remain cautious about Gaborone’s takeover ambitions. In 2024, diamond analyst Edahn Golan warned in 2024 that such an initiative might backfire for the state, especially in managing an entity like De Beers, arguing that Botswana could be short-sighted by rushing to exploit a finite resource and instead needs to use its diamond wealth to invest in its long-term future, since, with rare exceptions, governments usually do not perform well as economic operators.

Aurel Sèdjro Houenou