Botswana Seeks Gulf Partners in Bid for Greater Control of De Beers

BOTSWANA – Botswana is exploring partnerships with investors from the United Arab Emirates and Oman as it considers acquiring a larger stake in global diamond producer De Beers, a move that could significantly reshape ownership of one of the world’s most influential diamond companies.

President Duma Boko confirmed that discussions are underway with both Gulf nations as Botswana evaluates options to participate in the sale of De Beers by its majority owner, Anglo American.

The potential acquisition comes at a critical time for Botswana’s economy, which remains heavily dependent on diamond exports. Diamonds account for approximately 80% of the country’s export earnings and contribute around 25% of gross domestic product, making the sector central to economic growth, government revenue and employment.

Opportunity Emerges Amid Industry Restructuring

The opportunity follows Anglo American’s decision to divest its 85% stake in De Beers as part of a broader portfolio restructuring. The mining group has been streamlining operations and focusing investment on commodities such as copper and iron ore, which are expected to play a key role in the global energy transition.

Botswana currently holds a 15% stake in De Beers through a long-standing partnership that has been widely credited with helping transform the country from one of Africa’s poorest nations at independence into an upper-middle-income economy.

By increasing its ownership position, Botswana hopes to gain greater influence over the pricing, marketing and global distribution of diamonds mined within its borders.

Diamond Market Faces Growing Challenges

The proposed investment comes as the global diamond industry navigates a period of uncertainty. Demand from key consumer markets, particularly China, has weakened, while the rapid growth of lab-grown diamonds has intensified competition for natural stones.

These pressures have contributed to declining diamond prices and reduced export revenues for producing countries. Botswana has already felt the impact, with lower diamond sales affecting economic growth and government finances.

Earlier this year, ratings agency S&P Global Ratings revised Botswana’s credit outlook amid concerns over falling diamond revenues and increasing fiscal pressures.

Gulf Investors Seen as Strategic Partners

Botswana’s engagement with Gulf investors reflects the growing role of Middle Eastern capital in Africa’s mining and resource sectors.

Both the United Arab Emirates and Oman have expanded investments across Africa through sovereign wealth funds, infrastructure projects, logistics networks and mining ventures. Their financial strength could help Botswana secure a larger position in De Beers without placing excessive pressure on public finances.

President Boko has previously indicated that discussions had taken place with an Omani sovereign wealth fund regarding potential financing options. Botswana has also reportedly engaged regional diamond producers Angola and Namibia on possible cooperation aimed at strengthening African influence within the global diamond value chain.

Strategic Asset Remains Central to Global Diamond Trade

Despite current market headwinds, De Beers remains one of the most recognised names in the global diamond industry. The company operates several major diamond mines, including some of the world’s richest deposits located in Botswana, and continues to play a leading role in diamond marketing, trading and distribution.

For Botswana, securing a larger stake in De Beers would not only deepen its involvement in the industry but could also provide greater control over a sector that remains vital to the country’s long-term economic future.

As Anglo-American advances its divestment plans, Botswana’s efforts to attract strategic partners may determine whether the country can strengthen its position at the centre of the global diamond trade.