LAGOS, Oct 13 – Botswana is nearing an agreement with the Global Diamond Consortium that could increase the government’s stake in diamond producer De Beers to approximately 25%, according to a Bloomberg News report citing people familiar with the matter.
The consortium, led by former De Beers chief executive Gareth Penny, was named the preferred bidder for the diamond business in July. The proposed arrangement would raise Botswana’s ownership from its existing 15%, potentially giving the southern African country a greater role in the company’s future direction.
De Beers’ parent company, Anglo American, put the diamond producer up for sale in May 2024 as part of a broader corporate restructuring. The divestment followed a prolonged downturn in diamond prices and intensifying competition from laboratory-grown diamonds, which have pressured demand and prices in parts of the market.
Botswana’s potential increase in ownership comes as the country seeks to maintain its influence over an industry central to its economy. Diamonds have historically been a major source of government revenue and export earnings, making the future ownership of De Beers particularly significant for the country.
The Global Diamond Consortium’s proposal is part of a wider contest for the business. Namibia, Angola and private investors have also expressed interest in acquiring De Beers, highlighting the strategic importance of the company’s assets and position in the global diamond supply chain.
A final agreement with Botswana could reshape the ownership structure of De Beers as Anglo American advances its planned exit from the business. However, the reported negotiations remain ongoing, and the proposed increase in Botswana’s stake has not yet been confirmed as a completed transaction.
