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Botswana is seeking support from the United Arab Emirates (UAE) and Oman to acquire a strategic stake in De Beers from Anglo American.
Botswana President Duma Boko said the country was searching for an investment partner as Anglo American moved forward with the sale of its 85% stake in the diamond producer, news outlet Bloomberg reported last week. This move would increase the diamond-reliant nation’s influence over the industry. Earlier this year, Boko visited Oman after disclosing talks with a sovereign wealth fund regarding financing a controlling stake in De Beers.
“We are looking at reliable, trusted partners,” Boko told Bloomberg News. “The Omanis and the UAE have now claimed that spot. So any opportunity that comes, whether in the diamond space or other, we will now be looking to engage with them.”
Botswana already owns a 15% stake in De Beers. Any increase in its share in the miner will be subject to regulatory and antitrust approvals as well as negotiations with other bidders, according to analysts. Meanwhile, Botswana has also engaged with neighboring countries Namibia and Angola as it explores alliances to up its holding in De Beers.
The move reflects Botswana’s efforts to strengthen its role in a diamond industry that drives about 80% of its exports and about a quarter of its gross domestic product (GDP). Weak demand, falling prices, competition from lab-grown diamonds and US tariff uncertainty has impacted the sector, putting pressure on the country’s finances.
Anglo American is selling De Beers as part of a major restructuring following BHP’s takeover bid for the parent company a couple of year ago. The company has since refocused on copper and iron ore, and in February it slashed De Beers’ valuation for the third time in three years.
Image: Rough diamonds. (De Beers/Ben Perry/Armoury Films)
