Botswana is renegotiating its planned purchase of a stake in Belgian gem dealer HB Antwerp to double its shareholding without additional cost, following a decline in the diamond market, Mines Minister Lefoko Moagi announced on Tuesday.
As the world’s leading diamond producer by value, Botswana’s economy has been heavily impacted by decreased global demand for diamonds due to the economic slowdown.
Moagi told Parliament that the downturn in the diamond market has lowered HB Antwerp’s valuation, providing an opportunity for Botswana to renegotiate.
“We will not inject more capital but will secure more shares for the same amount proposed in 2023,” Moagi stated. “Instead of the 24%, we will negotiate for a 49.9% stake for the same initial investment.”
In February, the Finance Ministry’s budget documents indicated that Botswana had allocated 890 million pula ($65.95 million) for the 24% stake, valuing HB Antwerp at approximately $275 million.
The HB Antwerp deal was first announced during Botswana’s negotiations for a new sales contract with De Beers, Anglo American’s diamond unit, in March 2023.
As Botswana sought to enhance its ability to market its diamonds independently from its long-standing agreement with De Beers, the HB Antwerp deal was positioned as a strategy to strengthen Botswana’s presence in the downstream diamond industry.
The agreement includes a five-year supply of rough diamonds to HB Antwerp through the state-owned Okavango Diamond Company (ODC).
