What's Happening?
Angola is actively negotiating to acquire a 20%-30% interest in De Beers, the diamond unit of Anglo American. This move comes as part of broader discussions with other African diamond-producing nations. De Beers, a leading global diamond enterprise, operates
in several countries, including Botswana, South Africa, Namibia, Angola, and Canada. The company is currently up for sale by Anglo American due to declining diamond prices and the rise of synthetic diamonds. Initially, in October 2025, Angola bid for a majority interest in De Beers but later adjusted its goal to seek a minority holding. Angola's National Director of Mineral Resources, Paulo Tanganha, highlighted the risks associated with taking a majority stake in luxury commodities, emphasizing the need for a sustainable portion for the economy. The acquisition will be managed by Angola's state-owned companies, Endiama and Sodiam.
Why It's Important?
The acquisition of a stake in De Beers is significant for Angola as it seeks to strengthen its position in the global diamond market. By securing a minority stake, Angola aims to mitigate risks associated with market volatility in luxury commodities. This move could enhance Angola's economic stability and provide a strategic advantage in the diamond industry. Additionally, the acquisition places Angola in potential competition with Botswana, which currently holds a 15% share of De Beers and has expressed intentions to secure a majority holding. The outcome of these negotiations could influence the dynamics of diamond production and ownership in Africa, impacting the global diamond supply chain.
What's Next?
Confidential discussions are ongoing among Botswana, Angola, Namibia, and South Africa to establish a shared approach to benefiting from ownership in De Beers. However, no consensus has been reached yet. Angola's acquisition strategy will be managed by its state-owned entities, and various funding options are being considered to finance the stake purchase. The outcome of these negotiations could lead to shifts in ownership structures within the diamond industry, potentially affecting market dynamics and pricing strategies.
