Government of Botswana Makes Attempt to Take Over De Beers with Aid of Funds from Qatar

Gems News:  Moves Closer to Controlling De Beers

The Government of Botswana has stepped up its efforts to gain majority control of De Beers, one of the most iconic names in the diamond industry. With Anglo American announcing its intention to sell its 85 percent stake in De Beers, Botswana has hired global investment bank Lazard to negotiate a possible acquisition. Already holding a 15 percent stake, the southern African nation views De Beers as a strategic national asset crucial for its economy. At the same time, a multi-billion-dollar commitment from Qatar has added fuel to speculation that Botswana could seize full control of the company. This Gems News report indicates that the stakes are not just financial but deeply tied to national pride and long-term survival of Botswana’s diamond trade.

The Government of Botswana is making a concerted move to take over De Beers company completely
Image Credit: De Beers

De Beers in Crisis

De Beers, once a symbol of dominance in the global diamond trade, has been severely hit by declining demand, falling prices, and growing competition from lab-grown stones. In the first six months of 2025, its production fell 23 percent year-on-year, producing just 10.2 million carats. More alarming was the financial loss, with the company reporting an EBITDA loss of $189 million compared to a profit of $300 million in the first half of 2024. This downturn has made Anglo American reassess its position in diamonds and focus instead on other profitable resources such as copper.

Botswana’s Strategic Vision

President Duma Boko has been outspoken in recent weeks, criticizing De Beers for “not doing its job” and strongly suggesting that the government should take control. For Botswana, diamonds are more than just gemstones—they account for around 30 percent of GDP and 70 percent of foreign exchange earnings. With revenues shrinking, the government has already warned of spending cuts and revised its growth forecast from 3.3 percent to nearly zero. Acquiring De Beers outright, backed by Qatari funding, is seen as a bold step to protect the country’s future.

Funds from Qatar are being utilized in the bid to take over De Beers by the Botswana government
Image Credit: De Beers

Qatar’s Role and Financing

A crucial development in this saga is Botswana’s recently secured $12 billion investment pledge from Qatar-based Al Mansour Holdings. While the funds are officially earmarked for multiple sectors including tourism and agriculture, analysts believe a portion could be channeled into financing the De Beers acquisition. Market insiders suggest that although De Beers’ book value is $4.9 billion, real offers will be much lower given the current slump. This financing gives Botswana leverage as it negotiates with Anglo American and potential rivals.

Differentiating Natural from Synthetic Diamonds

Alongside the takeover effort, Botswana’s Ministry of Minerals and Energy is pushing forward with regulatory changes to clearly separate natural diamonds from synthetics. The proposal is to retain carats for natural diamonds while classifying lab-grown stones by grams. This initiative highlights Botswana’s determination to protect the prestige of its natural resources in an industry where synthetic diamonds are often sold at 55 to 95 percent less.

A Defining Moment for Botswana

If successful, Botswana’s move would mark a seismic shift in the global diamond industry. Direct ownership of De Beers would allow the country to bypass intermediaries and engage directly in international marketing, elevating its position on the global stage. For Anglo American, the sale would be part of a larger restructuring to shed struggling assets. For Botswana, however, it represents far more—a chance to secure economic sovereignty and ensure the survival of an industry that has defined its national identity for decades. The path forward will be closely watched worldwide, as the outcome could alter both the future of De Beers and the balance of power in the diamond trade.

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