Botswana, Angola eye split in battle for De Beers
Botswana and Angola mining authorities met in Botswana’s capital Gaborone on Friday as both nations posidtion themselves to take control of De Beers, the diamond unit Anglo American is selling as part of a major restructuring.
Botswana’s mines minister, Bogolo Joy Kenewendo, and Angola’s mineral resources minister, Diamantino Pedro Azevedo, talked behind closed doors for about 40 minutes before briefly addressing reporters. They said they discussed cooperation in the diamond sector, as well as energy and logistics, but did not provide details.
The meeting sparked market speculation about a possible deal through which the two countries could divide ownership of De Beers, in a potential alliance between Africa’s leading diamond producers.
“At the top of everyone’s minds this year is the performance of the diamond industry and our collaborative efforts in bringing back the spark and the shine to the industry,” Kenewendo said according to Reuters. “As some of the largest producers of diamonds by quantity and value in the world, it is only right that we meet and join hands in discussing how to get the most out of this natural resource,” she added.
Botswana, which owns 15% of De Beers through its Debswana joint venture and contributes about 70% of the company’s rough diamond supply, views De Beers as a strategic national asset. The southern African country’s economy has been hit hard by a global slump in diamond prices, intensifying its desire to secure greater control.
Angola, which initially proposed a pan-African consortium of diamond-producing nations to co-own De Beers, shifted gears in October by submitting a solo bid for a majority stake. That move set up a potential bidding war between the neighbouring producers.
Botswana losing ground
Angola recently overtook Botswana as Africa’s top diamond producer by value for the first time in two decades, according to the Kimberley Process, an international certification body. The nation’s 2024 output edged past Botswana’s, marking a symbolic shift in the continent’s diamond hierarchy.
Anglo American, which holds an 85% stake in De Beers, values the business at about $5 billion. Analysts at UBS estimate the final sale price could range from $3 billion to $4 billion, given soft market conditions.
The sale has drawn at least six potential buyers, including investor groups led by former De Beers executives Gareth Penny and Bruce Cleaver, Indian firms KGK Group and Kapu Gems, Qatari funds, and billionaire Anil Agarwal.
