Debate is intensifying over potential government acquisitions of De Beers shares, as Anglo American seeks to divest its 85% stake. While countries like Namibia and Angola explore participation, the economic logic is increasingly questioned.
Historically, Botswana benefited from diamond equity through Debswana and its De Beers stake. However, market dynamics have shifted. The rapid rise of synthetic diamonds, led by China, has significantly increased global supply, placing downward pressure on prices. Between 2022 and 2024, average diamond prices fell by roughly 35%, reflecting weakening demand for mined stones.
This structural shift raises concerns about the long-term value of investing in traditional diamond assets. With synthetic alternatives becoming near-perfect substitutes, the outlook for price recovery remains uncertain.
In this context, acquiring stakes in legacy diamond firms may present more risk than opportunity, particularly for economies already facing fiscal constraints and competing development priorities.
