Botswana, the world’s largest diamond producer by value, is seeking to capitalize on the current global economic slowdown, which has led to a decrease in diamond demand. This downturn has also affected HB Antwerp’s valuation, creating a chance for Botswana to renegotiate its investment terms.
Mines Minister Lefoko Moagi announced to parliament that the country plans to use the lower valuation of HB Antwerp to secure a larger ownership stake without putting in additional funds. “We will not inject more capital, but we aim to increase our share from 24% to 49.9% for the same amount proposed in 2023,” Moagi explained.
In February, Botswana’s finance ministry allocated 890 million pula ($65.95 million) to acquire a 24% stake in HB Antwerp, which valued the company at about $275 million.
The HB Antwerp deal, which was revealed during Botswana’s negotiation for a new sales contract with De Beers in March 2023, is part of a larger strategy to boost Botswana’s influence in the diamond industry. This move is also intended to enhance Botswana’s ability to market its diamonds independently of De Beers.
As part of the agreement, Botswana’s state-owned Okavango Diamond Company (ODC) will provide HB Antwerp with rough diamonds for the next five years.
This strategic adjustment shows Botswana’s efforts to navigate the current economic conditions while strengthening its position in the global diamond market.
