Botswana is aiming to increase its ownership in Belgian diamond dealer HB Antwerp to nearly 50% without additional investment, Mines Minister Lefoko Moagi announced on Tuesday.
The move comes as the world’s largest diamond producer by value seeks to capitalize on the downturn in the global diamond market.
The Southern African nation’s economy has been significantly impacted by the decline in diamond demand, prompting a reassessment of its investment in HB Antwerp.
Moagi explained that the company’s valuation has decreased, creating an opportunity to acquire a larger stake for the same initial investment.
“We will negotiate to get 49.9% for the same amount initially proposed for a 24% shareholding,” Moagi told parliament.
The government had previously allocated 890 million pula ($65.95 million) for the 24% stake, valuing HB Antwerp at approximately $275 million.
The decision to invest in HB Antwerp was made in March 2023 as Botswana sought to reduce its reliance on De Beers, its long-term partner in the diamond industry.
By acquiring a significant stake in the Belgian company, Botswana aims to strengthen its position in the diamond value chain and gain more control over the marketing of its diamonds.