President Duma Boko announced the plan on Monday during his State of the Nation Address in Parliament, saying the move would make Botswana the largest single shareholder in De Beers and give the country greater influence over the company's strategic decisions.
Boko said the government had selected the Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, as its preferred bidder for Anglo American's 85% holding in the diamond company.
The proposed transaction has not yet been finalised. Anglo American said it would continue working with Botswana, other governments and the consortium to agree on binding transaction documents.
Botswana currently holds a 15% stake in De Beers and has a long-standing partnership with the company through Debswana, a joint venture that operates the country's largest diamond mines. The government says its proposed investment is intended not only to strengthen national influence over the diamond industry but also to expand participation in the wider value chain, including technology and local beneficiation.
Boko highlighted De Beers' synthetic-diamond technology subsidiary, Element Six, as an additional strategic asset, pointing to potential opportunities linked to high-performance computing and the expansion of data centres.
He also said neighbouring Namibia and Angola would participate in the proposed transaction, signalling a wider effort by major African diamond-producing countries to secure a stronger position in the ownership of the industry. The proposed deal comes as the natural diamond market faces pressure from falling prices, competition from laboratory-grown diamonds and weaker luxury demand, particularly in China.
Anglo American announced plans to sell its De Beers stake in 2024 as part of a broader restructuring of its business. For Botswana, the proposed increase represents a significant attempt to translate its position as a major diamond producer into greater ownership and influence over the global market. Whether the investment delivers long-term economic benefits will depend on the final terms of the transaction and the future performance of the diamond industry.
