Botswana will double its holding in diamond producer De Beers to 30% under Anglo American's proposed sale of its stake, President Duma Boko said on Monday, 9 November, confirming the government's support for the deal.

Speaking in parliament in his State of the Nation address, Boko said Botswana's shareholding would rise from the current 15% once the transaction is complete, making the country De Beers' single largest shareholder.

"This means that, when this transaction is complete, Botswana's shareholding in De Beers will double from the current 15% to 30%," Boko said. "Botswana will become the single largest shareholder in De Beers, and with that comes greater influence in the strategic decisions for decades to come."

Consortium named preferred bidder

Boko said Botswana had selected the Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, as its preferred bidder for Anglo American's 85% stake in the diamond producer.

He added that the governments of Namibia and Angola, where De Beers also has mining operations, would take part in the transaction. Anglo American said on Monday it would continue to work with Botswana, the other governments and the consortium towards agreeing binding transaction documents.

Why Botswana's backing matters

Botswana's backing is key for the sale to progress, because the country holds a right of first refusal over Anglo American's stake, giving it an effective veto over any buyer.

Anglo American put De Beers up for sale in 2024 as part of a wider restructuring, amid falling prices for natural diamonds and growing demand for synthetic stones. The company cut the carrying value of De Beers to $2.3 billion in February after its third impairment in three years.

Neither side has disclosed a price for the deal, which has been reported at about $1 billion. Botswana bought its existing 15% stake 25 years ago.

Deal not yet binding

No binding sale agreement has been signed, and no completion date or regulatory approvals have been reported, so the 30% stake remains a plan until final agreements are reached.

Diamonds are central to Botswana's economy. The Jwaneng mine alone makes up more than 60% of the country's exports and nearly 25% of its gross domestic product, according to Debswana, and the mine produced 13.3 million carats in 2023. A larger state holding would therefore give Gaborone a bigger direct stake in the industry that funds much of public spending.

De Beers is one of the world's leading diamond companies, with operations and exploration spanning Botswana, Namibia, Angola, South Africa and Canada. Its Jwaneng mine in Botswana, operated by the Debswana joint venture between De Beers and the Botswana government, is among the richest diamond mines in the world by value.