Botswana president goals to clinch De Beers deal, diversify economic system

By Alessandra Galloni

DAVOS, Switzerland (Reuters) -Botswana’s new President Duma Boko mentioned on Thursday that he hoped to clinch a long-delayed diamond gross sales pact with Anglo American (JO:AGLJ) unit De Beers imminently.

Boko instructed a Reuters NEXT Newsmaker interview on the World Financial Discussion board’s annual assembly in Davos, Switzerland, that his authorities was in settlement with De Beers on most points and that each one that remained was “simply tidying up”.

“I am hoping it’s tomorrow. I imply it actually,” Boko mentioned, requested when the federal government deliberate to signal the gross sales deal.

Botswana, the world’s high diamond producer by worth, and De Beers in 2023 agreed a brand new gross sales pact, nevertheless it was by no means signed below Boko’s predecessor Mokgweetsi Masisi.

Boko secured a shock election victory late final yr, when voters within the Southern African nation kicked out the get together that had ruled them for practically six many years.

Botswana owns a 15% stake in De Beers and has been attempting to extend the share of tough diamonds it will get from its three way partnership with the corporate.

Anglo American is seeking to divest De Beers as a part of a broader restructuring of its sprawling enterprise, and Boko reiterated on Thursday Botswana’s place that it might improve its stake in De Beers.

“We’re seeking to see if we will get an even bigger slice of De Beers, and that is also topic to negotiations,” he mentioned.

Botswana’s diamond-dependent economic system is projected to have contracted final yr due to a pointy downturn within the world diamond market, however officers are hoping for a rebound this yr.