Angola Joins Race for Stake in De Beers

Angola has officially entered the race to acquire a minority stake in De Beers, the world’s largest diamond producer. Angola’s state-owned diamond company Endiama submitted a fully financed offer to Anglo American, De Beers’ parent company, which is preparing to sell its share. This bold move aims to reshape ownership dynamics in southern Africa’s diamond sector, advocating a pan-African partnership that balances power among key producers.

Angola’s Strategic Bid for De Beers Stake

Endiama’s proposal emphasizes a shared ownership model that includes Botswana, Namibia, South Africa, and Angola itself. Mineral Resources Minister Diamantino Pedro Azevedo underscored the importance of preventing any one country from dominating De Beers. Instead, the bid aims to protect the company’s independence while fostering competitiveness in the global market. This contrasts with Botswana’s recent announcement of seeking a controlling stake, highlighting divergent national strategies in the region.

Angola has emerged as Africa’s top diamond producer by value, surpassing Botswana for the first time in 20 years, according to the Kimberley Process report. Since 2022, De Beers and Angola have deepened cooperation, expanding from exploration to processing. Their collaboration recently led to the first significant kimberlite discovery in Angola in over three decades. De Beers CEO Al Cook praised Angola as one of the world’s prime diamond exploration frontiers, signaling the country’s growing importance in the industry.

Geopolitical Implications and Market Challenges

Angola’s bid intensifies a geopolitical contest for influence over De Beers amid a diamond market facing multiple challenges. Southern African producers seek greater control as lab-grown diamonds increase competition. Moreover, several consortia have expressed interest in De Beers’ shares, including billionaire Anil Agarwal, Indian companies KGK Group and Kapu Gems, and Qatari investment funds. The outcome will shape the future of diamond production and pricing across global markets.

SuperMetalPrice Commentary:

Angola’s pursuit of a De Beers stake marks a pivotal shift in southern Africa’s diamond governance. By advocating a balanced, pan-African ownership, Angola challenges Botswana’s ambition for dominance. This approach may stabilize regional relations and encourage collective growth. However, De Beers and its stakeholders must navigate increasing market pressures, from synthetic diamonds to shifting consumer preferences. Investors and industry watchers should closely monitor how these political and economic dynamics influence commodity pricing and global supply chains in metals and battery materials sectors.