Botswana is taking “concrete steps” to acquire a majority stake in De Beers, its president said, pitting it against Angola, which is also bidding to control the diamond giant.
Botswana President Duma Boko told lawmakers the aim was to acquire Anglo American’s shares in De Beers, adding that diamonds would remain a major contributor to growth even though he wants to diversify the country’s mining sector.
Botswana, the world’s top diamond producer by value, owns 15% of De Beers and has a decades-long mining arrangement with the company. Sales of the precious stone make up 80% of the country’s foreign exchange earnings, though a downturn in the global diamond market has battered the economy and hammered the country’s budget, prompting Boko to announce a public health emergency this year because officials were unable to purchase critical medical supplies.
Last month, Angola proposed the purchase of Anglo American’s 85% stake in the company and mining ministers from the two countries held talks on Nov. 7. The meeting sparked speculation about a possible deal through which the countries could divide ownership of De Beers, forging an alliance between Africa’s leading diamond producers.
