President Duma Boko has announced that Botswana will double its stake in De Beers to 30%, a strategic shift that has drawn sharp criticism from economic observers. According to AllAfrica, the government intends to purchase the remaining shares from Anglo American, which is disposing of its 85% holding in the diamond giant. This move marks a significant escalation in state involvement in the company, which has long been a cornerstone of Botswana’s financial stability. The transaction price remains undisclosed, though market speculation suggests a value around US$1 billion, with some analysts describing the potential sale as a "fire sale" due to the current market conditions.
The decision appears counter-intuitive given the severe headwinds facing the global diamond industry. AllAfrica reports that natural diamond prices have plummeted due to competition from lab-grown stones and depressed demand from China. Consequently, Botswana’s economy contracted by 2.8% in 2024 and a further 0.7% in 2025. The World Bank has warned that the country faces an unsustainable debt trajectory, with public debt rising from 22% of GDP in 2023 to nearly 40% in 2025. Standard & Poor’s downgraded Botswana’s credit rating in March, citing structural weaknesses in global diamond demand that constrain fiscal receipts.
Despite these warnings, President Boko argued that increased ownership would grant Botswana greater influence over strategic decisions. He stated that the country would become the "single largest shareholder" in De Beers, opening a new chapter for the nation's diamond industry. The Global Diamond Consortium, led by former De Beers CEO Gareth Penny, is collaborating with Botswana on the bid. The consortium includes governments from Namibia and Angola, as well as major luxury retailers like Richemont, suggesting a broad coalition of stakeholders aiming to restructure the company.
Critics view the move as a risky gamble. Mining correspondent Ed Stoddard noted that the gamble jeopardizes Botswana’s reputation for economic prudence. Keith Jefferis, a former deputy governor of the Bank of Botswana, told AllAfrica that the assumption De Beers can be turned around is risky given recent losses. However, others see a longer-term strategy. Paul Zimnisky of Paul Zimnisky Diamond Analytics suggested that leveraging diamonds is necessary to diversify the economy over decades. The government aims to shift value-addition activities like cutting and polishing to Botswana, using those revenues to fund broader economic diversification away from its historical reliance on the mineral.