The global diamond giant is losing its shine, but African countries are scrambling to compete.

(London, Feb 10) — Global diamond giant De Beers is facing a historic shift in ownership as its majority shareholder, Anglo American, accelerates plans to divest the struggling business amid weak demand and rising competition from lab-grown diamonds.

According to a report by the Financial Times on Feb 9, Anglo American CEO Duncan Wanblad said the group still aims to complete the sale of De Beers within this year, despite worsening market conditions. He noted that the process is “progressing relatively smoothly,” and it is almost certain that the Botswana government will emerge with a larger ownership stake.

The transaction is now nearing the end of its second-round bidding phase, with the eventual buyer “most likely a consortium” comprising both government and private investors. In addition to Botswana, the Angola government has expressed interest in acquiring a 20% to 30% stake, while Namibia is considering whether to bid for a minority share.

Anglo American has already warned that it may be forced to write down De Beers’ asset value for a third consecutive year, citing intensified competition from lab-grown diamonds and U.S. tariffs on Indian-polished diamonds. While some analysts argue that selling at the bottom of the cycle could destroy value, Anglo American’s management insists that exiting the underperforming diamond business is the best way to protect shareholder returns.

Botswana, which currently owns 15% of De Beers, plays a decisive role in the sale. President Duma Boko has publicly stated his desire to increase the country’s stake, and Wanblad acknowledged that any deal would require Botswana’s approval. As a result, De Beers’ future direction is increasingly shaped by African governments.

Analysts note that the growing involvement of African states underscores a broader shift of ownership back to the continent — and highlights the severe challenges facing the natural diamond industry as a whole.