Namibia is weighing whether to acquire a stake in global diamond giant De Beers as the industry grapples with a prolonged slump in prices, according to reports from local media on Monday. The move comes as Anglo American (AAL.L), De Beers’ parent company, pushes ahead with a sweeping restructuring plan aimed at refocusing its portfolio on copper and iron ore.
Deputy Prime Minister Netumbo Nandi-Ndaitwah confirmed that the government is studying the potential benefits and risks of buying into the storied diamond producer, which has been placed on the market by Anglo. The southern African nation, which already relies heavily on diamond mining as a pillar of its economy, could deepen its role in the sector at a time when the global market is under mounting pressure from synthetic stones and shifting consumer demand.
“We will carefully consider all aspects before making any decision. Diamonds remain a strategic resource for Namibia, but we must ensure the investment is in the best long-term interest of our people,” Nandi-Ndaitwah was quoted as saying.
The potential sale of De Beers is part of Anglo American’s plan to streamline its business and capitalize on the global energy transition. On September 9, the London-listed miner announced that it was pursuing a merger with Canadian firm Teck Resources (TECKb.TO) to form one of the world’s largest copper producers. Copper, a critical metal for electrification and renewable energy infrastructure, has become a strategic priority for many mining majors seeking to align with global decarbonization trends.
By contrast, the diamond industry has struggled with slowing demand, particularly in key markets such as the United States and China. Analysts say the surge of lab-grown diamonds, which are marketed as both ethical and affordable, has further squeezed natural diamond prices, eroding profitability for major producers like De Beers.
Namibia has long partnered with De Beers through Debmarine Namibia, a joint venture that carries out offshore diamond mining. While that collaboration has brought significant revenues to the state, deeper ownership could give the government more influence over production, pricing strategies, and future investments in the country.
However, industry observers caution that taking a stake in De Beers now may carry risks, given the cyclical nature of diamond prices and the uncertainty about whether consumer demand will rebound. Investing in the company could strengthen Namibia’s position as a global diamond hub, but it may also expose the state to financial pressures if the downturn deepens.
The sale of De Beers marks a turning point in the history of a company once synonymous with global diamond dominance. Founded in 1888, De Beers has been at the center of the world’s diamond trade for more than a century. If Namibia chooses to acquire a stake, it would not only reinforce its economic reliance on diamonds but also reshape the ownership structure of one of the industry’s most recognizable names.
Analysts expect potential buyers to include sovereign wealth funds, private equity investors, and resource-focused states. Namibia’s deliberations underscore how diamond-producing nations may seek to secure greater control over their natural resources as multinational corporations pivot toward commodities better aligned with the global energy transition.
For now, Namibia is keeping its options open, balancing the allure of deeper involvement in the diamond trade with the practical realities of a volatile market. A final decision is expected after consultations with stakeholders and economic advisors in the coming months.
As Anglo American prepares to shed one of its most iconic assets, the world will be watching to see whether Namibia steps in as a shareholder, potentially reshaping the future of the diamond industry at a time of profound change.
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