This content was first published on IGR – Italian Gemological Review no. 21 in 2025. The information provided here is therefore current as of the original publication date.
Despite efforts to diversify its economy through tourism, renewable energy, and the establishment of the Botswana International Financial Services Centre in 1999, mining remains at the heart of the country’s economic model. Botswana is still heavily reliant on diamonds, which account for roughly 30% of its GDP, 50% of government revenue, and 80% of total exports.
In February 2025, the government signed a new agreement with De Beers, securing a 15% stake in the company, extending mining licenses through 2054, increasing the share of diamond sales managed by the state-owned Okavango Diamond Company, and launching a “Diamonds for Development Fund” aimed at boosting local beneficiation through expanded cutting and polishing operations in Gaborone.
While the deal was initially seen as a win for Botswana, the situation has since grown more complex. Back in 2023, Anglo American, De Beers’ parent company, wrote down the value of the diamond group to $7.6 billion following a staggering 94% drop in profits. In May 2024, Anglo unveiled a new strategic plan announcing its exit from coal and nickel — and, unexpectedly, also from De Beers. Between May and June 2024, mining giant BHP entered talks to acquire Anglo American, but eventually walked away after making three failed bids, leaving the future of the diamond unit uncertain.
According to the Financial Times, President Duma Boko is now pushing for majority control of De Beers, aiming to secure full sovereignty over the diamond sector. The government has made clear its ambition to acquire the remaining 85% stake. However, despite Botswana’s substantial diamond reserves, persistent fiscal deficits and dwindling financial resources raise serious questions about the feasibility of a full takeover. The Financial Times headline from July 2025 put it bluntly: “Can Botswana take control of diamond giant De Beers?”.
To oversee the process, the government has appointed Swiss bank CBH Compagnie Bancaire Helvétique and French advisory firm Lazard, citing their expertise and compliance standards. The inclusion of CBH — a relatively obscure player in large-scale mining M&A — has raised some eyebrows, but officials insist the choice was made after careful deliberation. The move signals Botswana’s clear intent to take full control of De Beers and manage its diamond industry independently, reducing its long-standing dependence on Anglo American.
Gem news published on IGR – Italian Gemological Review #21 – Autumn 2025.
