Botswana is negotiating to increase its stake in Belgian diamond manufacturer HB Antwerp from 24% to 49.9% without additional cost, according to Minister of Minerals and Energy Lefoko Moagi.
The government initially allocated BWP 890 million ($65 million) for a 24% share in March 2023 but is now aiming for a larger ownership under the same financial terms.
Moagi explained that the decision to renegotiate stems from market changes since the initial announcement.
The updated agreement would provide Botswana more shares for the same investment. The government has completed legal, financial, and tax due diligence for this revised transaction.
Moagi outlined four key benefits for Botswana:
- Independent Price Discovery: Enhancing Okavango Diamond Company’s (ODC) ability to set prices independently.
- Sustainable Sales Method: Transitioning ODC from auction-based sales to contract sales.
- Access to Cutting-Edge Technology: Acquiring advanced diamond-cutting technology to increase local manufacturing of Debswana’s rough diamonds.
- Job Creation: Developing higher-value jobs in diamond pricing and marketing within Botswana.
Despite its recent establishment in 2021, HB Antwerp’s founders bring over a century of industry experience. HB Antwerp declined to comment on ongoing negotiations.
