Africa tightens grip on diamonds as Angola, Botswana move into De Beers
Angola and Botswana are stepping up efforts to increase their ownership in De Beers, a British multinational diamond company that specialises in the mining, trading and marketing of diamonds.
Angola’s state-owned diamond firm, Endiama, has announced plans to boost production to 17 million carats by 2027, following record output in 2024. The surge has contributed to Angola’s position as the world’s third-largest producer of rough diamonds by volume, behind Russia and Botswana.
As part of a strategy to capture more value from its natural resources, the Angolan government is considering acquiring a 20 - 30% strategic stake in De Beers. Officials say discussions are at an advanced stage.
Botswana, already a key shareholder in De Beers, is also seeking to increase its stake. The government currently holds 15% of the company and has expressed interest in expanding its ownership as Anglo American moves forward with plans to sell the diamond business.
Meanwhile, Anglo American CEO Duncan Wanblad said he is optimistic a deal could be signed before the end of the year.
“At this stage I’m optimistic that we should see a deal signed during the course of this year. We are now really advanced in the second phase of our process,” Wanblad told reporters after the release of the company’s interim results.
He added that “Botswana is an extremely important and key stakeholder,” noting that its position would be decisive in determining the structure of any final deal. Botswana President Duma Boko has publicly voiced support for increasing the country’s stake.
De Beers, founded more than 135 years ago by Cecil Rhodes in South Africa, has mined hundreds of millions of carats across the continent, particularly in South Africa, Botswana and Namibia, generating tens of billions of dollars in revenue.
However, the diamond market is currently facing headwinds. Wanblad acknowledged uncertainty over De Beers’ valuation following significant write-downs that contributed to Anglo American posting a $3.7 billion loss.
“At the moment there is a plentiful supply of rough diamonds in the market, with Angola ramping up output during the course of the year,” he said, adding that he could not rule out further impairments depending on market conditions.
If Angola secures up to 30% and Botswana increases its holding, the two African producers would collectively control a substantial share of De Beers.
This story is written and edited by the Global South World team, you can contact us here.
