The proposed African consortium’s bid for De Beers is more than a business transaction. It represents an opportunity for resource-rich African nations to take greater control of their economic destiny, create value at home and redefine their place in the global economy.
There is something profoundly encouraging about the prospect of Botswana, Namibia and Angola joining forces to acquire a stake in De Beers. It is the kind of African cooperation that deserves to be celebrated, encouraged and, ultimately, replicated across the continent.
For too long, Africa has been content to occupy the bottom end of the global value chain, supplying the world with raw materials while others have controlled the technology, markets, expertise and profits generated from them. Our resources have fuelled industries and economies far beyond our borders, while the countries from which those resources originate have too often settled for a fraction of their true economic value.
The proposed Global Diamond Consortium offers an opportunity to change that narrative.
Botswana President Duma Boko’s announcement that the consortium has been selected as the preferred bidder for Anglo American’s 85% interest in De Beers, with Namibia and Angola participating, is a significant development. It demonstrates what becomes possible when African countries recognise that their collective economic interests can be stronger than their individual negotiating positions.
This is the Africa we want: confident, commercially ambitious, collaborative and prepared to take its rightful place in the global economy.
Importantly, this is not simply about buying shares in one of the world’s most recognised diamond companies. It is about securing influence over the future of an industry that has shaped the economies of these three countries for generations.
It is about beneficiation, technology transfer, skills development, industrialisation and ensuring that a greater proportion of the value created by African diamonds remains on African soil. The involvement of De Beers’ Element Six business, which specialises in advanced synthetic diamond technology, also presents opportunities to position the region beyond traditional mining, cutting, polishing and trading.
There is, however, a need for clear-eyed commercial judgement. The natural diamond industry faces considerable challenges, including changing consumer preferences, competition from laboratory-grown diamonds and uncertainty in international markets. The proposed investment must therefore be supported by a credible business case, sound financing arrangements and a clear understanding of the risks.
Governments must not expose taxpayers to unnecessary financial obligations or confuse strategic ownership with an obligation to spend public money at any cost. Economist Robin Sherbourne’s questions about whether a potential N$3 billion investment in De Beers represents the best use of scarce public resources deserve serious consideration. Strategic ambition must be matched by financial discipline.
For Namibia, the opportunity is particularly significant. Our government already holds 50% interests in Namdeb, Debmarine Namibia and the Namibia Diamond Trading Company. A meaningful stake in De Beers could strengthen our influence across the diamond value chain and provide an opportunity to shape decisions affecting the future of our industry.
Government must, however, end the uncertainty surrounding Namibia’s participation. The public deserves clarity on the proposed investment, its financing, the terms of participation and the status of the diamond sales agreement with De Beers, which expired in May. Parliament must also be properly informed about the implications for existing partnerships and the country’s long-term interests.
Transparency and accountability are not obstacles to this initiative. They are prerequisites for its success.
More importantly, the three countries must approach this as a genuine strategic partnership, not merely a financial arrangement. They should use their combined influence to negotiate better market access, develop regional skills, attract investment, expand local manufacturing and build institutions capable of competing internationally.
Africa does not lack natural resources. What it has too often lacked is the collective ambition, industrial capacity and political will to translate those resources into sustainable prosperity.
The proposed consortium offers a glimpse of a different approach: African countries working together, pooling their strengths and moving from being participants in global industries to becoming influential owners and decision-makers.
We should welcome this ambition, support the principle behind it and demand the commercial discipline necessary to make it work.
The ultimate measure of success will not be the percentage of De Beers owned by African governments. It will be the jobs created, businesses developed, technologies transferred, skills acquired and wealth retained on the continent.
African resources must increasingly translate into African ownership, African industries, African expertise and African prosperity.
That is not economic nationalism. It is economic maturity. And, more importantly, it is the Africa we want.
