Botswana and Angola Meet to Discuss Cooperation on De Beers Sale as Africa’s Diamond Market Shifts
Botswana and Angola held high-level talks in Gaborone, Botswana, as both countries position themselves to gain control of De Beers, the diamond unit that Anglo American is selling as part of a corporate restructuring.
Botswana’s Mines Minister Bogolo Joy Kenewendo and Angola’s Mineral Resources Minister Diamantino Pedro Azevedo met privately for approximately 40 minutes before making brief comments to the press.
They confirmed discussions focused on diamond sector cooperation, energy, and logistics, though specific details were not disclosed.
The meeting fueled market speculation about a possible alliance between Africa’s top diamond producers, potentially dividing ownership of De Beers between Botswana and Angola.
“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 shine to the industry,” said Kenewendo.
“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.”
Botswana’s Strategic Position
Botswana currently owns 15% of De Beers through its Debswana joint venture and supplies roughly 70% of the company’s rough diamonds, making it a critical national asset.
The country’s economy has been impacted by a global slump in diamond prices, heightening its interest in securing greater control over the company.
Angola’s Ambitions and Regional Shift
Angola initially proposed forming a pan-African consortium of diamond-producing nations to co-own De Beers but later submitted a solo bid for a majority stake, setting the stage for a potential bidding contest between the neighboring nations.
Recent data shows that Angola overtook Botswana as Africa’s top diamond producer by value for the first time in two decades. Angola’s 2024 output slightly surpassed Botswana’s, signaling a shift in the continent’s diamond hierarchy.
The De Beers Sale
Anglo American, which holds an 85% stake in De Beers, values the company at approximately $5 billion. Analysts estimate the final sale price could range between $3 billion and $4 billion, reflecting current market conditions.
The sale has attracted interest from at least six potential buyers, including investor groups led by former De Beers executives, Indian firms, Qatari investment funds, and billionaire Anil Agarwal.
The outcome of these discussions and the eventual sale could reshape Africa’s diamond industry and determine how the continent’s most valuable natural resource is managed in the coming years.
