Botswana is seeking financial backing from the United Arab Emirates and Oman to fund a potential acquisition of a strategic stake in De Beers, a bold move that could fundamentally reshape ownership of the 138-year-old diamond monopoly.
President Duma Boko confirmed that his administration is in active discussions with both Gulf nations to help back Botswana’s participation in the sale. The opportunity arises as Anglo American Plc accelerates a sweeping restructuring plan to divest its 85% controlling interest in the diamond giant. For Botswana—which already owns the remaining 15%—the sale represents a generational, yet high-stakes, opportunity to tighten its grip on the luxury supply chain that anchors its national wealth.
The aggressive pursuit of Middle Eastern capital underscores the fiscal constraints facing the southern African nation, which is grappling with a severe downturn in the global diamond market.
“We are exploring all strategic options to ensure Botswana secures its economic future,” President Boko said, confirming the discussions with Gulf investors. “A deeper partnership with sovereign capital from the UAE and Oman could provide the financial leverage needed to execute a transaction of this magnitude.”
The diamond industry is currently navigating its most turbulent period in recent history. A toxic mix of collapsing demand in China, aggressive competition from lab-grown alternatives, and macroeconomic uncertainty has sent rough-diamond prices tumbling. The downturn has directly impacted Botswana’s bottom line, where diamonds account for roughly 80% of export earnings and a quarter of gross domestic product.
The urgency of the deal has been heightened by growing domestic pressures. Earlier this year, S&P Global Ratings downgraded Botswana’s credit outlook, citing falling diamond revenues and mounting fiscal strain as global buyers cut purchases and inventories piled up across trading hubs.
By expanding its equity in De Beers, Gaborone aims to secure greater structural influence over how the world’s most precious stones are priced, marketed, and distributed globally.
“For decades, the partnership between Botswana and De Beers has been the gold standard for resource-based development in Africa,” said an industry analyst tracking the sale. “But the current market rout has exposed the extreme vulnerability of a single-commodity economy. Gaborone sees ownership as the ultimate tool for stability.”
The deal comes as Anglo American completely overhauls its corporate footprint. Following a dramatic defense against a $49 billion hostile takeover bid from rival BHP Group last year, Anglo is cutting ties with legacy non-core assets to focus strictly on copper and iron ore, two commodities expected to surge on the back of the global green energy transition.
Faced with a multibillion-dollar valuation for De Beers, Botswana is pivoting toward the deep pockets of Gulf state sovereign wealth funds. The UAE and Oman have aggressively expanded their footprint across Africa, deploying capital into infrastructure, logistics, and critical minerals to diversify their own oil-dependent economies.
President Boko previously indicated that Botswana had held preliminary talks with an Omani sovereign wealth fund regarding potential financing structures. Beyond the Middle East, the government has also held loose discussions with neighboring producers Angola and Namibia in a bid to form a united southern African front in the luxury market.
Despite its current cyclical struggles, De Beers remains the undisputed heavyweight of the diamond world, commanding the world’s richest open-pit mines, the vast majority of which sit inside Botswana’s borders.
