Omanghana
Angola, Africa’s second-largest diamond producer, has confirmed that it is in discussions to acquire a significant stake in De Beers, one of the world’s most influential diamond companies.
The Angolan government is seeking to purchase between 20% and 30% ownership of the diamond giant, with the goal of securing a permanent position on the company’s board and gaining a direct role in shaping its future direction.
Angola Wants a Seat at the Decision-Making Table
Speaking at a business conference in Lisbon, Angola’s Minister of Petroleum and Mineral Resources, Diamantino Azevedo, said the country wants a stake large enough to provide meaningful strategic influence.
He explained that Angola’s objective is not simply to become a financial investor, but to participate in key corporate decisions and contribute to the long-term development strategy of one of the world’s largest diamond companies.
The government believes board representation would allow Angola to have a stronger voice in decisions affecting the global diamond market, production strategies, and industry transformation.
Shift From Majority Ownership Plans
The move represents a change from Angola’s earlier consideration of pursuing a majority stake in De Beers.
Officials now believe that a minority investment of between 20% and 30% provides a more balanced and sustainable approach, especially given current challenges facing the natural diamond industry.
Angola’s National Director of Mineral Resources, Paulo Tanganha, said a minority position would reduce financial exposure while still allowing the country to influence major decisions.
The diamond market has faced significant pressure from declining luxury demand, changing consumer preferences, and growing competition from laboratory-grown diamonds.
Push for African Ownership Partnership
Angola is also exploring a broader African partnership model involving other major diamond-producing countries, including:
- Botswana
- Namibia
- South Africa
The proposed approach would create shared African ownership of De Beers rather than allowing control of the company to rest with a single country.
Officials believe such a structure would ensure that Africa, which produces a significant share of the world’s diamonds, has greater influence over the future of the global diamond industry.
Why De Beers Is Available for Sale
Angola’s interest comes as Anglo American, the current parent company of De Beers, moves toward selling its controlling stake in the diamond business.
Anglo American currently owns 85% of De Beers and is seeking to divest the diamond unit as part of a broader strategy to focus on industrial metals, particularly copper.
The company’s decision comes during one of the most difficult periods in recent history for the natural diamond sector.
Diamond Industry Faces Major Challenges
The global diamond market has experienced a sharp downturn due to weaker consumer demand and increased competition from synthetic diamonds.
The pressure has forced De Beers to introduce major cost-reduction measures, including a widely reported temporary production pause at Venetia Mine, South Africa’s largest diamond mine.
The company has also faced challenges from changing buying patterns, especially among younger consumers who are increasingly considering lab-grown alternatives.
Angola’s Growing Diamond Power
Angola has emerged as one of the world’s fastest-growing diamond producers, supported by investments through its state-owned mining company, Endiama.
The country produced a record 14 million carats of rough diamonds in 2024, making it the world’s third-largest producer by volume, behind only Russia and Botswana.
The government has identified diamonds as a key driver of economic diversification and foreign exchange earnings.
Ambitious Production Expansion Plans
Angola is currently implementing an aggressive expansion program aimed at increasing annual diamond production to approximately 17 million carats by 2027.
The country hopes that greater participation in De Beers will complement its domestic mining ambitions by giving Angola stronger influence across the global diamond value chain.
A New Era for Africa’s Diamond Industry
Angola’s potential investment in De Beers represents a broader push by African diamond-producing nations to gain greater control over the resources originating from the continent.
If successful, the deal could mark a significant shift in ownership dynamics within the global diamond industry and strengthen Africa’s role in determining the future of one of its most valuable natural resources.
Source: Omanghana
