President Mokgweetsi Masisi disclosed to JCK News the possibility of the Botswana government raising its shareholding in the global diamond miner De Beers.
This comes in the wake of parent company Anglo American’s announcement of plans to spin off or divest the business.
Currently, the government holds a 15% stake in De Beers, with Botswana contributing 70% of the company’s annual rough diamond supply.
Anglo’s strategic review, which includes a potential sale or divestment of the diamond business to focus on other ventures like copper, iron ore, and a UK-based fertilizer project, aims to fend off a takeover from larger rival BHP Group.
President Masisi expressed support for Anglo’s sale of De Beers if it materializes. He mentioned the possibility of the government increasing its shareholding in De Beers if deemed attractive, reiterating the government’s commitment to safeguarding its interests in the diamond miner, as previously stated to CNBC Africa.
Amidst speculation about potential plans, including an initial public offering for the diamond business, President Masisi emphasized Botswana’s preference for a long-term investor as an ideal partner in De Beers. The government aims to keep out “bad actors” and seeks investors whose vision aligns with its own.
President Masisi emphasized the importance of a long-term perspective in diamond ownership, noting the industry’s cyclic nature and the necessity for committed investors willing to weather its fluctuations.
