en.Wedoany.com Reported - Botswana is seeking cooperation with the United Arab Emirates (UAE) and Oman to acquire a strategic stake in De Beers, thereby enhancing its influence over the country's diamond industry. President Duma Boko stated that as Anglo American proceeds with the sale of its 85% stake in De Beers, Botswana is looking for reliable and reputable partners. Boko visited Oman earlier this year, having previously disclosed discussions with the country's sovereign wealth fund regarding financing for the acquisition of a controlling stake in De Beers.

Botswana has also held discussions with Namibia and Angola to explore ways to increase its influence over De Beers. The diamond industry contributes approximately 80% of Botswana's export revenue and about a quarter of its GDP, making it the world's largest producer of rough diamonds. However, in recent years, the sector has been severely impacted by falling prices, weakening demand from China, competition from lab-grown diamonds, and uncertainties related to US tariffs. The market downturn has strained Botswana's finances, leading S&P Global Ratings to downgrade its credit rating this year.

Botswana currently holds a 15% stake in De Beers and has a right of first refusal over Anglo American's shares. Analysts say the future stake size will depend on regulatory approvals, antitrust reviews, and negotiations with rival bidders.

Anglo American is selling De Beers as part of a comprehensive restructuring following its successful defense against a $49 billion takeover attempt by BHP (ASX, LSE: BHP) in 2024. Since then, the mining giant has refocused on copper and iron ore, divesting other assets outside these priority businesses. Earlier this year, Anglo American wrote down the book value of De Beers to $2.3 billion, reflecting the prolonged weakness in the diamond market. The majority of the company's diamond mining operations are conducted in Botswana, making this sale one of the most closely watched transactions in the industry's history.

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