TIRI MASAWI
Botswana’s multi-billion dollar plan to take over De Beers could give its government greater control and influence over Namibia’s diamond industry.
If successful, Botswana would own more than half of De Beers, which itself controls 50% of Namdeb alongside the Namibian government.
The announcement has raised alarm in Windhoek, with experts warning that Botswana could soon be calling the shots on how Namibia’s diamonds are managed and sold.
The information comes at a time when sources say the Namibian government has over the years ignored expert advice to embark on negotiations to avoid a situation where the country’s diamonds fall into the hands of another government.
A source told Namibia Business Review that Botswana has a first right of refusal should De Beers decide to sell its shares.
The Ministry of Industries, Mines and Energy yesterday said negotiations aimed at a “win-win outcome” for all parties are underway.
Botswana currently owns a 15% stake in De Beers through the Debswana joint venture, while Anglo American holds 85%. The Botswana government is now negotiating to increase its share to over 50% by acquiring Anglo American’s stake. The acquisition is seen as a strategic priority for Botswana, aimed at securing its economic future. The government is seeking financial backing from partners such as Oman’s sovereign wealth fund, with President Duma Boko confirming the Oman Investment Authority (OIA) as a potential partner.
KEEPING TABS
Ministry of Industries, Mines and Energy executive director Moses Pakote told Namibia Business Review the government remains closely engaged on developments in the regional diamond sector.
“Given the significant contribution and impact to Namibia’s Gross Domestic Product (GDP), the current changes in the diamond industry continue to be a strategic focus area,” Pakote said.
“However, like our neighbouring countries, it is critical to consider the implications, opportunities and risks against other national imperatives and GDP contributions.”
He added that Namibia is pursuing a “win-win outcome” for both the industry and the nation.
“The government is seized with ongoing engagements to ensure a win-win outcome for both the industry and the Namibian nation as a whole. When all relevant stakeholders are aligned, information will be shared through the relevant channels,” he said.
A SLEEPING GOVERNMENT
An economist source believes the Namibian government has “basically been caught sleeping, and that the Botswana government was smart”.
“The Botswana government negotiated a deal to have first right of refusal when De Beers wants to sell its shares. Now Botswana will basically control Namibian diamonds.”
Former Diamond Commissioner Kennedy Hamutenya said Botswana’s move could have direct consequences for Namibia given De Beers’ extensive footprint in the country.
“Hypothetically speaking, if Botswana goes ahead and increases its stake in De Beers to a controlling stake, it generally means that they will own a substantial stake in Namibian diamonds,” he said.
He warned that Namibia risks being sidelined if it fails to negotiate its position.
“De Beers owns 50% of their assets here in Namibia through Namdeb, a partnership with the government. They also own assets in Canada, Sierra Leone, Angola and other countries. If Namibia does not find a way of negotiating, it will be left on the periphery of the industry,” he said.
Hamutenya added that Angola has already begun reassessing its position in light of Botswana’s ambitions.
“When Angola heard that Botswana wants more of De Beers, they realised all their resources could be owned by another country,” he said. “It would be good for Namibia to find ways of playing a part in that deal if it goes ahead.”
He suggested that Namibia could leverage expertise rather than large capital to gain influence.
“They don’t have to use a pot of money, but can have a team of experts running their stake while the country oversees the process,” he said. “Botswana clearly wants to control the revenue. They are sitting with stockpiles of more than US$2 billion (N$34.6 billion) which they cannot sell and they made promises to their people.”
Hamutenya added that Namibia could gain access to more than just diamonds if it positions itself well.
“By being part of this deal, Namibia could access other De Beers assets. That’s the kind of thinking driving Botswana’s move,” he said.
LET SOUTHERN AFRICA COPY OPEC
American independent diamond analyst Paul Zimnisky yesterday told Namibia Business Review that Botswana and Angola are pursuing influence over De Beers, but Angola appears more open to collaboration.
“Both Botswana and Angola are publicly jockeying for a controlling stake in De Beers,” he said. “That said, Angola seems more open to a joint partnership structure where producing nations, including Namibia, work together to manage and support the company.”
Zimnisky said an “Organisation of the Petroleum Exporting Countries (OPEC)-like structure” could benefit the global diamond industry.
“If all the major stakeholders are included, a public-private partnership structure could work well with private owners managing the business side, while governments safeguard national interests,” he said.
He said Botswana already indirectly owns a portion of Namibia’s diamond assets through its 15% share in De Beers.
Namdeb chief executive officer Riaan Burger said the impact of Botswana’s potential takeover on Namibia depends on government action.
“Whether or not we will be affected by that issue depends entirely on the government. How the government moves will determine everything,” Burger said, referring further questions to Namdeb’s public relations office.
Namdeb spokesperson Grace Luvindao said she will respond tomorrow (Tuesday).
ECONOMIC BACKBONE
Diamonds are Namibia’s most prized asset raking in billions in foreign currency earnings and contributing significantly to the country’s GDP.
In the third quarter of 2025, Namibia’s diamond mining sector directly contributed approximately 6% to the country’s GDP, and nearly 8% if diamond processing is included.
Diamond production was flat year on year in the third quarter of 2025 at 457,000 carats, but this represented a 15% quarter-on-quarter decrease from the second quarter of this year.
The reduction was primarily due to vessel maintenance schedules in marine operations.
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