By AfricaHeadline – Special Feature
Angola has formally entered the race for the future of De Beers, with state-owned diamond company Endiama submitting a fully funded proposal to acquire a minority stake in the world’s largest diamond producer, even as Botswana accelerates plans to secure majority control.
AfricaHeadline Reports Team
editorial@africaheadline.com
The move comes as Anglo American, which owns 85 per cent of De Beers, prepares to divest the unit as part of a wider restructuring. The government of Botswana, already holding 15 per cent, has signalled its intention to lift its stake to a majority position by the end of October, positioning itself as the company’s lead shareholder.
According to people familiar with the negotiations, Angola is targeting around a 25 per cent stake but has no ambition for outright control. Minerals minister Diamantino Pedro Azevedo said the Angolan proposal was designed to create a more balanced governance structure, where producing countries, Angola, Botswana, Namibia and South Africa, would all have a seat at the table, preventing dominance by a single nation.
For Luanda, the investment is not only a financial play but also a strategic move to reinforce Angola’s status as one of the world’s top diamond producers, while gaining influence over global policies on pricing, marketing and distribution.
Botswana, by contrast, has openly declared its ambition to secure a controlling stake. President Duma Boko has said the country is “more than ready” to close the transaction, having appointed Lazard as financial adviser. To finance the acquisition, Gaborone is in talks with potential partners, including foreign sovereign wealth funds.
The strategy is underpinned by Botswana’s dominant role in the sector: the country accounts for roughly 70 per cent of De Beers’ rough diamond supply through joint ventures. Majority control would allow Gaborone to redefine the balance of power in the industry and capture a larger share of value along the supply chain.
The context for the bidding war is far from ideal. De Beers, with a book value of $4.9bn, faces a depressed market: global demand is weakening, synthetic diamonds are gaining ground, and inventories remain high. Analysts believe any sale is likely to be concluded well below book value.
For Angola, a minority stake offers lower financial risk while still securing strategic access. For Botswana, the challenge will be to justify the cost of majority ownership in a shrinking market while ensuring political and economic returns at home.
Industry specialists point to four potential scenarios:
Shared ownership, Angola, Botswana and other producing countries agree to divide equity under a joint governance model.
Botswana majority, Gaborone secures majority control while still allowing Angola a minority position.
Public listing, if no agreement is reached, Anglo American could opt for an IPO of De Beers shares.
Stalemate, disagreements over valuation or financing terms delay Anglo’s exit.
Regardless of the outcome, the dispute signals a structural shift: African producers are no longer content to act solely as suppliers of rough stones but are seeking to become equity stakeholders in the company that sets the global tone for the diamond industry.
Analysts say that if Angola and Botswana strike a workable balance, the new ownership model could mark the beginning of an era in which southern Africa exerts decisive influence over a sector long dominated by foreign private groups.
