Botswana and Angola Vie for Control of Diamond Giant De Beers
High-stakes negotiations are set to commence in Gaborone as the mining ministers of Botswana and Angola meet to discuss the future of De Beers, the legendary diamond unit put up for sale by its parent company, Anglo American. The talks could signal the start of a regional bidding war for one of the world’s most iconic gem enterprises.
A Strategic National Asset
For Botswana, the stakes could not be higher. The nation already holds a 15% stake in De Beers and, more critically, supplies a staggering 70% of the company’s annual rough diamond production. Despite a global slump in diamond prices that has rattled its economy, the government views De Beers not merely as a corporate entity but as a strategic national asset. The company’s operations are deeply woven into the fabric of the country’s economic and social development.
Angola’s Ambitious Bid
Angola, however, is not content to sit on the sidelines. Reports indicate that the oil-rich nation initially explored acquiring a minority stake but has since shifted its strategy, submitting a bold bid for a majority share. This aggressive move positions Angola as a direct competitor to its neighbor, raising the prospect of a complex geopolitical and economic tussle for control.
According to a schedule from Botswana’s mines ministry, Minister Bogolo Joy Kenewendo will host her Angolan counterpart, Minister Diamantino Pedro Azevedo, with talks beginning around 0800 GMT. While the official agenda remains confidential, the subject of the De Beers sale looms large over the discussions.
The Global Context of the Sale
The ministerial meeting underscores the immense value placed on the diamond company. Anglo American’s decision to divest from De Beers, which it values at approximately $4.9 billion, is part of a broader corporate strategy to streamline its portfolio and focus on other core commodities like copper. This has created a rare opportunity for nations to secure a commanding position in the global diamond trade.
Following their private talks, the ministers are scheduled to meet with Botswana’s President, Duma Boko, a move that highlights the strategic importance of the matter at the highest levels of government. Minister Azevedo is then expected to depart for Angola, likely carrying the initial outcomes of what could be a protracted negotiation process.
The outcome of this diplomatic and financial contest will not only reshape the ownership of a $4.9 billion industry titan but could also redefine the balance of power in the world’s diamond markets for decades to come.
Source: Adapted from original reporting.