Botswana’s government is negotiating to increase its stake in the Belgian diamond company HB Antwerp without additional cost, according to Lefoko Moagi, the country’s Minister of Minerals and Energy.
Moagi told Botswana’s parliament on Tuesday that due to changes in market conditions since the initial investment announcement in March 2023, the government is revising the terms of its proposed investment. “We are negotiating a higher equity percentage than the 24% initially proposed,” Moagi said. “The new terms will not require additional capital; instead, we will receive a larger share for the same investment amount.”
Originally, Botswana planned to purchase a 24% stake in HB Antwerp, a company specializing in polishing large diamonds, with a budget of BWP 890 million ($65 million). According to Reuters, Botswana now aims to acquire a 49.9% stake.
The government has completed the necessary legal, financial, and tax due diligence for the transaction. Moagi outlined four main objectives for the acquisition:
Independent Price Discovery: The investment will allow the Okavango Diamond Company (ODC), Botswana’s state-owned rough diamond trading business, to establish its own pricing, which it has not been able to do before.
New Sales Methods: The acquisition will enable ODC to sell rough diamonds through contracts, moving away from its current auction-based sales method.
Cutting and Polishing Technology: Botswana will gain access to advanced cutting and polishing technology, including for smaller stones. This technology will help keep more of the rough diamonds from Debswana, the joint venture between De Beers and the Botswana government, within the country for manufacturing rather than exporting them.
Job Creation: The investment aims to create jobs in high-value sectors of the diamond industry, such as pricing and marketing, where Botswana has limited involvement.
HB Antwerp was founded in 2021, but its founders bring over a century of combined industry experience. The company declined to comment on the ongoing negotiations, according to a spokesperson.
