BCP Raises Alarm Over De Beers Acquisition Plan

The Botswana Congress Party (BCP) has strongly opposed President Duma Boko’s announcement that Botswana will acquire a controlling stake in De Beers by the end of October 2025, warning that the move is fiscally reckless, legally questionable, and economically risky.

In a recent interview with CNN’s Richard Quest, President Boko revealed that Botswana is finalising a deal with Anglo American plc to raise its stake in De Beers to over 50%, granting the country effective control of the global diamond conglomerate.

He cited “economic sovereignty” and the need for Botswana’s “voice to be heard” as key motivations for the acquisition.

However, the BCP argues that these reasons lack a sound business case. The party estimates that Botswana would need at least $1.476 billion (approximately P19.63 billion) to acquire an additional

36% of De Beers shares, and up to $3.485 billion (P46.34 billion) to purchase the full 85% stake Anglo American intends to offload.

The BCP warns that the natural diamond industry is undergoing a structural shift, with declining demand and rising competition from lab-grown diamonds (LGDs), gold, and other gemstones. The government’s own September 2025 Macroeconomic Overview projects weak demand for natural diamonds through 2028.

“Technological advances are driving down the cost of LGDs while improving their quality and market share,” the party stated. “A responsible government will not risk billions on De Beers under current levels of industry uncertainty.” The party also cited Botswana’s fragile fiscal position, noting projected budget deficits of P24.7 billion and P22.1 billion in the 2024/25 and 2025/26 financial years, respectively. Public debt has surpassed 30% of GDP, and the economy is expected to contract for a second consecutive year.

BCP leaders argue that the proposed acquisition comes at a steep opportunity cost, particularly in the context of ongoing crises in public health and education. “It would be foolhardy for a government that cannot afford medicines or learning materials to commit billions to a speculative investment,” the party said.

Concerns have also been raised about Botswana’s capacity to manage a global corporation like De Beers. The BCP claims the country lacks the industry-specific expertise needed to maintain operational efficiency and profitability.

Furthermore, the party alleges that the acquisition is illegal, as it has not been presented to Parliament for approval. “The President must explain where he derived the authority to commit Botswana to this transaction,” the statement read.

Responding to questions about financing, President Boko mentioned potential investors, including the Oman Social Wealth Fund. The BCP questioned whether Oman’s involvement would be in the form of credit or equity, warning that either scenario could compromise Botswana’s interests.

“If it’s credit, it deepens fiscal risk. If it’s equity, Botswana risks becoming a mere front for foreign financiers,” the party said.

The BCP concluded its statement with a firm rejection of the deal, calling it “too risky, too costly, and lacking due diligence.”