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Namibia holds back on buying shares in De Beers

by Editor
November 23, 2025
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Namibia holds back on buying shares in De Beers
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Namibia has yet to decide whether to buy shares in De Beers, as Botswana and Angola move ahead with their own positioning on the possible sale of the world’s leading diamond company.

The uncertainty comes at a time when southern Africa’s major producers are adjusting their strategic footing in response to Anglo American’s intention to focus on copper and iron ore.

This shift has opened the door to new ownership possibilities in De Beers.

In a statement last week, the Ministry of Industries, Mines and Energy dismissed a newspaper report claiming the Cabinet had agreed to acquire a 10% to 15% stake in De Beers for about N$14.5 billion.

Executive Director Moses Pakote said the article was “not accurate”, emphasising that no approval had been granted and that “no such agreement to acquire equity in De Beers has been concluded or approved by Cabinet”. He said the government continues to monitor global diamond-sector developments but will only communicate formally once “all relevant stakeholders are aligned”.

Pakote stressed that decisions of this scale must be assessed against Namibia’s national imperatives, economic diversification plans and long-term GDP prospects.

He said consultations with industry and government stakeholders are continuing, adding that Namibia is already deeply integrated into the De Beers system through Namdeb Holdings, where it owns 50%.

Namdeb produced roughly 2.2 million carats in 2022, contributing around 9% of De Beers’ group output that year.

While Namibia steps back from speculation, Botswana and Angola have positioned themselves decisively. Botswana remains the world’s top producer of rough diamonds by both volume and value.

It yielded 24.8 million carats in 2022 and 25.09 million carats in 2023, valued at about US$3.28 billion. Although production eased in 2024 because of weak global demand, Botswana’s diamond sector remains central to De Beers’ supply pipeline.

With a 15% shareholding already secured, Botswana has always maintained that it would consider increasing its stake should Anglo divest.

Gaborone has repeatedly signalled that it wants greater control over pricing, marketing and downstream value.

Angola has entered the discussion from a different angle, driven by its sharp rise in production.

The country produced about 8.8 million carats in 2022, increased to 9.75 million carats in 2023, valued at roughly US$1.53 billion, and surged to around 14 million carats in 2024.

This growth is the result of sweeping reforms under President João Lourenço, who opened the sector to investors and introduced transparent sales systems. Industry reports indicate Angola has already expressed formal interest in a minority stake and favours an African-led ownership structure involving Angola, Botswana, Namibia and South Africa.

Namibia’s profile differs from those of its neighbours. The country produced around 2.0 million carats in 2022 and 2.38 million carats in 2023, but its diamonds carry some of the highest per-carat values in the world, averaging about US$601 per carat in 2022 because of the premium quality of marine diamonds. Its strength lies in high-value output rather than scale.

This high value has made diamonds one of the country’s most important sources of revenue. Diamond mining contributes significantly to Namibia’s tax base through corporate income tax, royalties, export levies, dividends from Namdeb Holdings and taxes paid by Namdeb contractors and suppliers. In 2022 alone, De Beers’ Namibia operations contributed more than N$12.5 billion to the economy, including N$4.8 billion in taxes and royalties, while Debmarine paid N$1.6 billion in 2021 and is projected to pay up to N$4.7 billion in 2022. Namdeb Holdings itself paid about N$1.773 billion in royalties and N$112 million in corporate tax in 2023. Over the years, diamonds have funded large portions of the national budget, boosting state revenues in periods of strong global demand.

Corporate taxes and royalties from the Namdeb–De Beers partnership have historically ranked among the top contributors to government revenue, helping stabilise the fiscus when other sectors — such as uranium, fishing or tourism — experience downturns.

The industry also generates indirect tax through high-paying jobs, coastal spending and capital investment in Oranjemund and Lüderitz, with some analyses estimating that up to 80 cents of every US$1 earned from Namibian diamonds ultimately flows to the state through taxes, royalties and dividends.

Anglo American’s strategic repositioning is driving the broader regional shift. The company has valued De Beers at around US$4.9 billion after multi-year impairments totalling over US$3.5 billion.

Its desire to focus on future-facing commodities has attracted multiple prospective investors, with at least six expressions of interest reported by mid-year.

Pakote reiterated that the Cabinet has not approved any equity purchase and that the government is acting deliberately and methodically.

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