Gov’t mum on De Beers purchase move
Lewanika Timothy | Monday June 30, 2025 10:07
Whilst government had previously been confident about increasing its stake, it has now retracted to silence leaving room for speculation for market watchers.
Recently, during the future of mining summit held in Gaborone, the Minister of Minerals and Energy Bogolo Kenewendo, quizzed on whether government was going to exercise its pre-emptive right and increase its stake in De Beers, said that 'government like other players is watching and observing and will in due course announce its decision'.
The past political administration had signalled strong interest in exercising its pre-emptive right to purchase more shares in De Beers as an opportunity to strengthen its position in the global diamond value chain. “We will raise our hand for more stake in De Beers as is our right,” said the then minister of Minerals and Energy Lefoko Moagi.
Government's mum stance now reflects broader challenges that have since befallen the diamond sector and the coffers since two years ago when Moagi made that statement to a group of journalists. The diamond market has failed to recover from a glut created by oversupply in 2021 when rough diamond production reached all times high and as a consequence Botswana's financial stance has deteriorated making it tougher for government to be sure on a move that would require billions of dollars for government.
Economists have also questioned whether government should be considering increasing its stake on De Beers. Former Bank of Botswana Governor Keith Jeffries shared at an India Chamber of Commerce meeting in Gaborone this year that government should not be thinking of deepening its dependency on diamonds through more investment in De Beers as this will worsen the dependency of the economy on diamonds.
“One can wonder really if government should even consider buying more shares in De Beers. It would require lots of money and deepen the dependence on diamonds,” he shared.
Whilst Botswana weighs its options De Beers Group has continued to draw mounting interest from prospective buyers as Anglo American accelerates its plans to divest its 85% stake in the business.
Most recently, interest has been reported from Indian mining billionaire, Anil Agarwal, along with Qatar’s sovereign wealth funds, as global investors take notice of a rare opportunity to acquire one of the world’s most storied names in luxury and mining.