Botswana, Angola Seek Stakes in De Beers

The governments of Botswana and Angola are bidding to buy De Beers, paving the way for a new era of African ownership for the diamond miner, according to statements from both countries.

“We have communicated our firm intention to increase our stake in De Beers to a controlling stake — that, is upwards of 50%,” Botswana President Duma Boko said last Tuesday in an interview on Bloomberg Television.

The transaction “must be concluded by end of October,” he stated.

Botswana already owns 15% of the diamond producer, with Anglo American holding the rest. The nation would consider taking more than a 50% stake, “because we want to have effective control of the industry,” Boko added.

“We want our voice to be heard,” he said. “It’s a matter of economic sovereignty for Botswana.”

Botswana has potential collaborators to fund the purchase, including Oman’s sovereign wealth fund, the president noted.

Meanwhile, Angola has “submitted a fully financed offer [last Tuesday] to acquire a strategic minority stake in De Beers,” the country’s government said in a Portuguese statement. The government called for a “pan-African consortium, led by the industry” to “guarantee the company’s independence and international competitiveness.”

Angola proposed inviting Botswana, Namibia and South Africa to “join the project in a prominent position.”

“Angola believes that De Beers’ future depends on its continued existence as a global, private-sector-led company,” said Diamantino Pedro Azevedo, the country’s minister of mineral resources and petroleum, in the statement. “Our proposal aims to establish a meaningful partnership between Angola, Botswana, Namibia, and South Africa, ensuring that no single party holds exclusive control and that the company can evolve as a truly international commercial entity.”

Image: Haul trucks transporting kimberlite at De Beers’ Orapa mine in Botswana. (Ben Perry/Armoury Films/De Beers)