Botswana plans to renegotiate its acquisition of a stake in the Belgian diamond dealer HB Antwerp, aiming to double its shareholding without additional cost due to the recent downturn in the diamond market, according to the country’s mines minister.
As the world’s leading diamond producer by value, Botswana’s economy has been significantly impacted by a decrease in global diamond demand amid an economic slowdown.
Mines Minister Lefoko Moagi informed parliament that the weakened diamond market has also affected HB Antwerp’s valuation, providing Botswana with an opportunity to adjust the terms of its investment. “We will not be injecting more capital, but we will secure a larger shareholding for the same amount proposed in 2023,” Moagi said. “Instead of the 24% stake, we will negotiate for 49.9% for the same amount initially proposed.”
Finance ministry documents revealed in February that Botswana had allocated 890 million pula ($65.95 million) for a 24% stake, which valued HB Antwerp at approximately $275 million.
The deal with HB Antwerp was announced during Botswana’s talks with Anglo American’s De Beers unit in March 2023, as the country sought to enhance its ability to market its diamonds independently from the long-standing De Beers agreement. The HB Antwerp deal is intended to bolster Botswana’s presence in the downstream diamond industry and includes supplying rough diamonds to the trader for five years through the state-owned Okavango Diamond Company (ODC).