Botswana government says it is set to increase its stake in De Beers as the leading diamond producer moves to cement status and have greater influence in the industry.
In a recent public address, President Duma Boko confirmed his country is doubling shareholding in the diamond major and had picked Global Diamond Consortium as its preferred bidder for Anglo American’s interest in De Beers.
Delivering his third State of the Nation Address recently, Boko added the investment in De Beers is not just an investment in natural diamonds it is in technology.
“Measured against these principles, the government has selected the Global Diamond Consortium as its preferred bidder for Anglo American’s interest in De Beers,” he said in the televised speech.
“This means that, when this transaction is complete, Botswana’s shareholding in De Beers will double from the current 15% to 30%. Botswana will become the single largest shareholder in De Beers and with that, comes greater influence in the strategic decisions for decades to come.”
According to Boko, the process started with government assembling advisers, international and Batswana, of the highest calibre including financial, legal, technical, tax and diamond valuation.
He added that over many months, they examined every proposal, tested every assumption, and negotiated on behalf of this nation with skill and resolve.
The process started after government, acting through the Office of the President and the Minerals Development Company Botswana, resolved that a decision to increase the stake in De Beers must be taken with exceptional care. This was in response to Anglo American decision to sell its 85% interest in De Beers.
Boko noted the team’s work was guided by five principles including sustainable profitability for De Beers, under an experienced, well-funded operator with a clear plan; greater strategic influence for Botswana over assets of national importance; broader participation across the diamond value chain, including beneficiation at home amongst others.
He added they were lured to increase stake in De Beers as the company also owns Element Six, the world leader in synthetic diamond technology.
“As the world builds superintelligence and vast data centres, demand for high-technology synthetic diamonds will surge. The government of the United States has asked Element Six to partner in developing this technology.”
According to Boko, U.S President Donald Trump has announced a new $600 million joint facility in Georgia adding that in his discussions with Commerce Secretary Lutnick, they agreed that Element Six can stand at the heart of a new technology partnership between our two countries.
“Botswana will not stand alone, our neighbours and friends, the Republic of Angola and the Republic of Namibia, will take part in this transaction beside us,” Boko told Parliament.
“For the first time, the great diamond-producing nations of our region will sit together at the ownership table of the company that markets their diamonds, united by a shared belief that local resources should bring local prosperity.”