Botswana’s plan to acquire a 24% stake in Belgian gem trader HB Antwerp, initially proposed by the previous government, remains uncertain.
The deal, announced in March 2023 by former President Mokgweetsi Masisi, was intended to challenge Botswana’s long-standing partnership with De Beers by allowing State-owned Okavango Diamond Company to receive polished rather than rough prices for some of its sales. However, the agreement was never finalized.
“They were still conducting due diligence and never closed on the agreement,” said Minerals and Energy Minister Bogolo Kenewendo. “Nothing was signed, so there is nothing to progress.”
Despite this, HB Antwerp remains committed to the transaction. “The deal is definitely not abandoned, and HB is committed to Botswana,” said co-founder Rafael Papsimedov.
The company had been waiting for Botswana to finalize its new ten-year agreement with De Beers, signed last month, and now intends to re-engage.
Botswana allocated 890 million pula ($60 million) in its 2024/25 budget for the acquisition, though a former minister suggested that amount should secure a 49.9% stake, given the weakening diamond market.
The global diamond industry is struggling, with declining demand from key markets like China and increasing competition from lab-grown diamonds.
Meanwhile, Anglo American, which owns De Beers, is considering divesting from the unit, in which Botswana holds a 15% stake, after writing down its value by $4.5 billion in just over a year.
Botswana contributes about two-thirds of De Beers’ annual production, with diamond sales accounting for over a third of the country’s budget revenue and most of its foreign exchange earnings.
HB Antwerp is already active in Botswana through its agreement to buy large stones from Lucara Diamond’s Karowe mine.
Commenting on the potential revival of the deal, Kenewendo, who was appointed by President Duma Boko in November, said, “If they reach out again, we will see if it makes sense.”
