Botswana is betting on the Gulf to take control of De Beers... a deal that could redraw the global diamond map

Written by Omnia Hassan

In a move that could bring about a historic transformation in the global diamond industry, BotswanaAfrica’s largest diamond producer, is seeking investment support from the United Arab Emirates and Oman to acquire a larger stake in De Beers, one of the world’s oldest diamond mining and marketing companies with a history spanning 138 years.

A rare opportunity in the diamond market

These moves come as Anglo American prepares to divest its 85% stake in De Beers, as part of a plan to restructure its business and focus on strategic metals such as copper and iron ore, which are expected to play a pivotal role in the global shift towards clean energy.

Observers believe this move opens the door for Botswana to strengthen its influence within the company, which has been linked for decades to the prosperity of the country’s economy, especially since it currently owns 15% of De Beers shares through a partnership described as one of the most successful resource-sharing models in Africa.

Diamond-based economy

The diamond sector remains the mainstay of the Botswana economy, representing about 80% of export revenues and nearly a quarter of the GDP. However, the sector is facing increasing pressure due to declining global demand, especially from the Chinese market, along with the rapid spread of lab-grown diamonds.

This decline has impacted government revenues and economic growth, prompting authorities to seek ways to give them greater control over the pricing, marketing, and sale of diamonds globally.

Gulf partnership to enhance influence

President Douma Poko confirmed that his government is in talks with investors and sovereign wealth funds in the UAE and Oman to explore potential financing for the deal, taking advantage of the growing presence of Gulf states in the mining and natural resources sectors within Africa.

Reports also indicate that Botswana is considering expanding its circle of regional partners through consultations with Angola and Namibia with the aim of strengthening African influence within the global diamond industry.

The future of an entire industry

Despite the challenges facing the natural diamond market, De Beers still maintains its position as one of the leading brands in the sector, and operates some of the richest diamond mines in the world, most of which are located within Botswana. Therefore, the success of this potential deal would not only give the African country greater economic leverage, but could also redraw the balance of power in the global diamond industry for decades to come.