Botswana is nearing an agreement that could give it approximately a quarter of De Beers, advancing its effort to gain greater influence over the diamond company at the centre of its economy.
- Botswana could increase its De Beers shareholding from 15% to approximately 25%.
- Bloomberg reports that negotiations over the ownership structure are advancing, but remain unfinished.
- The discussions form part of Anglo American’s planned exit from the diamond business.
- De Beers’ weak earnings underline the financial risks accompanying greater state ownership.
The government currently owns 15% of De Beers, while Anglo American holds the remaining 85% and is seeking to sell its interest.
The prospective ownership arrangement involves the Global Diamond Consortium, headed by former De Beers chief executive Gareth Penny.
For Botswana, the decision combines an opportunity to influence the company’s future with the risk of committing more resources to an industry facing prolonged pressure.
According to Bloomberg’s 13 October report, people familiar with the negotiations said Botswana’s holding could rise to around 25%. Talks remain ongoing. Anglo, the consortium and Botswana’s presidential office declined to comment.
A larger holding carries a larger financial exposure
Botswana’s ambition predates the latest negotiations.
In September, Moody’s warned that a substantial debt-financed investment in De Beers could place further pressure on the country’s credit rating.
That makes the purchase price and financing structure as important as the eventual percentage. A larger shareholding would increase Botswana’s exposure to future earnings, losses and funding needs.
More production has not restored earnings
De Beers’ own results show the difficulty facing prospective investors.
In the first half of 2026, group revenue fell to $1.6 billion, from $2 billion a year earlier. Its average realised rough-diamond price declined 32% to $105 a carat, reflecting both weaker pricing and a greater proportion of lower-value stones sold.
The company recorded an underlying loss before interest, tax, depreciation and amortisation of $113 million, although that improved from a $189 million loss a year earlier.
Meanwhile, production in Botswana increased 43% to 10.3 million carats. Higher output did not prevent the wider group’s revenue decline.
De Beers said smaller, lower-quality natural diamonds remained under pressure from laboratory-grown alternatives. Demand in mainland China also continued to weaken, while India remained comparatively resilient.
Ownership and diamond sales are different questions
Botswana’s interest in De Beers sits alongside its separate relationship with Debswana, the mining joint venture owned equally by the government and De Beers.
Botswana also secured an agreement increasing the share of Debswana’s production available to its state-owned Okavango Diamond Company.
Those arrangements concern mining and the marketing of Botswana’s diamonds. Acquiring additional De Beers shares would instead increase the government’s interest in the broader international business.