Botswana plans to double its existing stake in De Beers to 30%, positioning itself as the diamond company's single largest shareholder under a proposed acquisition led by former De Beers chief executive Gareth Penny and his Global Diamond Consortium (GDC).
Announcing the development during his State of the Nation Address, Botswana President Duma Boko endorsed the consortium's proposal to acquire Anglo American's 85% interest in De Beers, signalling a significant shift in ownership towards the diamond-producing countries.
“Botswana will become the single largest shareholder in De Beers, and with that comes greater influence in De Beers for decades to come,” Boko said.
He also indicated that Namibia and Angola would join Botswana as shareholders, creating a stronger partnership between the countries responsible for producing a substantial proportion of the world's natural diamonds.
Responding to the President's announcement, Gareth Penny, Chairman of the Global Diamond Consortium, welcomed Botswana's support and acknowledged the involvement of other governments in the proposed transaction.
“We welcome President Boko’s comments regarding partnering with The Global Diamond Consortium to acquire Anglo American’s 85% interest in De Beers,” Penny said.
He thanked the governments of Botswana, Angola, Namibia and Oman for their support, describing Botswana's endorsement as a significant step towards reshaping the ownership and future direction of the diamond business.
“Together, we believe we can create a new chapter for this iconic business, one defined by strategic clarity between producing countries and the wider value chain, stronger consumer connection, and sustained growth in demand for natural diamonds,” he added.
The consortium said its immediate priority was to finalise agreements with Anglo American.
According to reports by Rapaport and Bloomberg, the consortium is expected to pay approximately $1 billion for Anglo American's 85% stake, comprising $750 million upfront and a further $250 million in deferred payments. The GDC is also reportedly planning to inject $500 million into the business.
The consortium's reported backers include Signet Jewelers, Richemont and diamond sightholders Pluczenik, Diarough and Grandview Klein. Rosy Blue, previously reported to be associated with the consortium, is now understood to be unlikely to participate, according to Rapaport.
De Beers chief executive Al Cook and Moshe Klein of Grandview Klein were among those present at Boko's address, as was Penny.
Boko also outlined plans to strengthen Botswana's position across the wider diamond industry. He announced that De Beers' industrial diamond arm, Element Six, had reached an agreement with the US government to produce synthetic diamonds.
The President further indicated that Botswana would sign an agreement in Paris, reportedly with the French government, seeking to reserve the term 'diamond' for natural stones.
The announcements come against a challenging economic backdrop. Acknowledging that Botswana had taken an “economic battering”, Boko highlighted persistent youth unemployment, rising fuel prices and pressures on the country's healthcare system.
Nevertheless, he remained optimistic about the country's economic direction. “We are down but not out,” he said, outlining his ambition to build a more diversified economy in which diamonds remain important but are no longer the sole driver of growth.
