TIRI MASAWI
Namdeb Holdings says Botswana’s plan to acquire a larger stake in De Beers will not immediately alter the company’s 50/50 ownership structure with the Namibian government.
Namdeb, which is jointly owned by De Beers and the Government of Namibia, maintains that control over Namibia’s diamond operations remains secure for now. This though the eventual outcome of De Beers’ sale could reshape the broader ownership landscape in the diamond industry.
“Namdeb Holdings is a 50/50 partnership between Namibia and De Beers, and we have no indication that this will change,” Namdeb spokesperson Grace Luvindao told Namibia Business Review last week.
Luvindao said Namibian diamonds will always be owned by the people of Namibia.
“Who owns the commercial interest shares in the enterprise that will have the rights to these diamonds, is a different question altogether. The answer to that will be determined by the final outcome of the sale process of De Beers,” she said.
Botswana is currently negotiating to increase its shareholding in De Beers beyond 50%. Should that happen, Botswana would effectively hold a majority stake in the global diamond company, which in turn owns half of Namdeb.
Industry observers say while the Namibian government’s direct 50% shareholding in Namdeb is not immediately at risk, the sale of De Beers could influence future strategic decisions, operational priorities, and profit flows within the joint venture.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.
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.
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.
Hamutenya also told a weekly podcast , The Agenda on Sunday that, “It will be embarrassing if Namibia fails to capitalise on the proposed idea.
“It will actually be embarrassing if Botswana and Angolans come and sit in the Namdeb board room for their controlling stake and we have nothing,” he said.
American independent diamond analyst Paul Zimnisky 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.
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