Botswana President Duma Boko has announced that his government is preparing to acquire a majority stake in De Beers, intensifying regional competition after Angola also placed a majority bid for the 137-year-old diamond company last week.

Speaking during his State-of-the-Nation Address on Monday, Boko said Botswana had begun: “concrete steps” toward purchasing Anglo American’s 85% shareholding in De Beers. Botswana already owns 15% of the company and supplies around 70% of its rough diamonds through Debswana, a joint venture between De Beers and the Botswana government.

Anglo American plans to exit De Beers as part of a strategic refocus on copper and other energy-transition metals. The company values De Beers at about $4.9 billion, significantly lower than past valuations as natural diamond prices continue to fall under pressure from synthetic stones.

Angola’s mines ministry confirmed last week that it had held talks in Gaborone with Botswana’s mining minister regarding the potential acquisition of De Beers shares.

Botswana views De Beers as a strategic national asset. Diamonds account for 80% of the country’s export earnings and roughly one-third of government revenue. The slump in natural diamond prices has already hit the economy hard: Debswana’s sales fell 46% last year, and production dropped another 26% in the first half of 2025. In August, Boko declared a public health emergency after shortages in medical supplies in government clinics and hospitals, a crisis widely linked to declining diamond revenues.

Analysts say Botswana’s push for majority ownership is driven by concerns that an external buyer could alter De Beers’ structure or weaken Botswana’s influence over the supply chain. The government has also signalled interest in increasing control over diamond marketing and sales.

However, some analysts caution that Botswana may be overcommitting to an industry facing long-term decline. For example, Frans Cronje said Botswana is: “trying to catch a falling knife.”

Cronje argues that Botswana has far stronger options than competing with Angola for a shrinking global market. “Botswana could become the Guernsey of Southern Africa,” he said. “Eliminate estate duty, capital gains tax, inheritance tax, wealth taxes, slash corporate tax to 10%, and market the country as a stable, well-governed financial hub for South Africans. With its wildlife, security, and governance, it would boom.”