BIG BET: Botswana is gambling with its future by doubling its stake in De Beers
Botswana seems to be looking at its past through rose-tinted glasses without taking heed of the ominous dust clouds swirling on its horizon.
Botswana is taking a risky gamble with its future by increasing its ownership in De Beers, a diamond mining company. President Duma Boko announced on Monday that Botswana will raise its stake in De Beers from 15% to 30%. This move comes as the global diamond market faces a structural downturn, with prices for uncut gemstones falling 32% in the first half of 2026.
The trend is expected to continue as the younger generation worldwide moves away from purchasing natural diamonds. Botswana's economy, once thriving on diamond revenues, is now grappling with a 2.8% contraction in 2024 and 0.7% contraction in 2025. The country's investment grade credit rating has been downgraded due to the bleak outlook for diamonds.
While Botswana has been trying to diversify its economy with other minerals, metals, and hydrocarbons, the progress has been slow. Increasing its stake in De Beers does not bode well for the country's long-term economic resilience.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
