A NON-IDEA Botswana’s Bid for De Beers Control Meets Fierce Domestic Criticism
Botswana’s bold push for a controlling stake in diamond giant De Beers, as reported by the Financial Times this Wednesday, has ignited intense domestic debate, with former Business Weekly founder and editor Tshireletso Motlogelwa leading a chorus of criticism branding the strategy a dangerous doubling down on a dying industry.
According to the FT, Mining Minister Bogolo Kenewendo declared Botswana “remains resolute in his quest to increase Botswana’s stake in De Beers to ensure Botswana’s full control over this strategic national asset,” echoing President Duma Boko’s recent threat that “maybe we should take over and sell them ourselves” due to dissatisfaction with current sales. This ambition comes amid a fraught sale process by owner Anglo American, with Kenewendo accusing the company of failing to manage the divestment “transparently or in co-ordination with the government,” complicating bids due by early August. The FT noted Botswana currently owns 15% of De Beers and half the Debswana mining joint venture, but faces significant financial hurdles: a budget deficit projected to hit 7.5% by 2026, recent borrowing of $300 million from the African Development Bank, and President Boko’s own admission that the diamond slump has left the nation “broke.”
The government’s position was immediately challenged by prominent voices, spearheaded by former Business Weekly editor Motlogelwa, who dismissed the De Beers gambit as “just another Tomokoraga idea that’s a non-idea.” In a scathing social media reaction, Motlogelwa argued, “We cannot increase our exposure to the luxury stone any more than we already have banna, nna ke a gana. That’s the very problem we are trying to solve,” insisting Botswana’s ownership of the actual mines through Debswana provided sufficient leverage without needing deeper entanglement.
He declared “the diamond story is dead and buried and most Batswana are just in denial,” urging instead a radical pivot toward diversification, specifically endorsing President Boko’s mention of an “invitation to the Angolan refinery” as the type of “fresh idea” needing vigour. “Why not invest in Gold, Gas, Petroleum opportunities across the continent from Ghana to Angola to even next door Namibia?” Motlogelwa questioned, stressing Botswana must escape its diamond dependency rather than reinforce it.
His call found resonance among other citizens. Owen Rampa, Group Head at Yarona Media Holdings (YMH), aligned with Motlogelwa’s stance, stating simply, “The diamond story is over. I’m with you Pa. Let’s widen the net and fish out fresh new opps.”
Meanwhile, Maoto Kagiso proposed a concrete alternative model focusing on value addition: “My crazy idea was for the government of Botswana to import cocoa from countries like Ghana and Ivory Coast then process it here locally as a finished product then companies like Kalahari Chocolates and Sweet Sensations get to package and export back. I mean if countries like Belgium, Canada and Switzerland can do it why can’t we?” Several commentators on this matter seemed to hold the view that Botswana should among others, opt to become a processing hub for African commodities, signalling a growing appetite for economic reinvention beyond diamonds.
While the government, as reported by the FT, views diamonds as a “strategic national asset” worth controlling despite market turbulence, with Kenewendo insisting financing “is not an issue” despite offering no details, a significant segment of the populace and business community sees deepening diamond investment as perilous. They point to the structural threats eroding the industry: the relentless rise of lab-grown gems, Botswana’s extreme export reliance where diamonds still account for roughly two-thirds of foreign earnings, and successful models like Belgium’s chocolate empire proving niche agro-processing can thrive far from the mine shaft.
As Motlogelwa bluntly framed it, pursuing greater control of De Beers risks repeating past mistakes, invoking the spectre of previous policies: “Tomokoraga is why we are here.” The numerous Batswana who dialogued on this matter would rather have the country chart a truly diversified economic course than the costly control over a volatile legacy industry.
