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Engagements with the United Arab Emirates and Oman are emerging as part of Botswana’s strategy to secure a larger stake in De Beers from Anglo American, as the country seeks greater influence over the future of the global diamond industry.
The move signals a shift from passive resource ownership towards more assertive strategic control, as the diamond-dependent economy seeks greater influence over pricing, marketing and long-term industry direction. President Duma Boko has framed the outreach as part of a broader effort to align with “reliable, trusted partners”, with Gulf sovereign capital emerging as a natural fit. Beyond financing, partnerships with the UAE and Oman could offer Botswana access to established trading hubs, downstream markets and alternative routes to market at a time when traditional diamond value chains are under pressure.
Botswana’s diamond sector, responsible for roughly 80% of export earnings and a quarter of GDP is navigating one of its most challenging periods in recent years. Weak demand from China, the rise of lab-grown diamonds and ongoing global trade uncertainties have combined to suppress prices and strain fiscal stability, contributing to a recent credit-rating downgrade. Against this backdrop, increasing its stake in De Beers is not just a financial play but a strategic one. Botswana already holds 15% of the company and retains pre-emptive rights over Anglo American’s 85% stake.
Securing additional ownership, particularly alongside aligned partners, could give the country greater leverage over how its diamonds are valued, marketed and distributed globally. The discussions also reflect a broader repositioning. Botswana has reportedly engaged Namibia and Angola, signalling potential regional alignment in shaping the future of the diamond sector. Such collaboration could strengthen Africa’s collective influence in an industry historically dominated by external players.
For Anglo American, the divestment forms part of a wider restructuring strategy following its defence against a $49 billion takeover attempt by BHP in 2024. The company is refocusing on copper and iron ore, leaving diamonds outside its core portfolio. Its decision to write down De Beers’ value to $2.3 billion underscores the scale of the market downturn and the urgency of the sale. However, the current weakness may present an opportunity. Entering at a lower valuation, while partnering with capital-rich Gulf investors, could allow the country to consolidate its position at the centre of the diamond value chain.
The outcome will depend on regulatory approvals, competitive bidding dynamics and the structure of any partnership. Botswana’s strategic ambition to become the world’s leading producer of rough diamonds is anchored in its pursuit of a greater stake in value capture across the entire diamond value chain. In doing so, the country may be setting a precedent for how resource-rich African nations engage with global capital, not just as hosts of extraction but as strategic players shaping the future of their industries.
