Government denies claims of plan to buy stake in De Beers

De Beers store (Photo by: Financial Times)

The government has rejected reports suggesting that the Cabinet approved a plan for the country to acquire a stake in the De Beers Group. The rumoured transaction claimed Namibia would purchase a 10–15% share in the global diamond company, valued at roughly N$14.5 billion, together with Botswana and Angola.

In a statement, the Ministry of Industrialisation, Mines and Energy clarified that the Cabinet had not considered or approved any such deal, calling the report inaccurate.

Economist Robert McGregor from CIRRUS Capital cautioned that even if Namibia were exploring such an acquisition, it would be financially and strategically unwise. He explained that the cost of up to N$15 billion would be far beyond what the country can afford.

McGregor added that the country is facing more urgent priorities and warned that buying into De Beers would deepen the country’s dependence on a single commodity. Diamond mining contributes around 6% of Namibia’s GDP, but revenues have weakened in recent years due to lower global prices.

He said increasing exposure to one sector carries significant economic risk, particularly when the industry’s performance is volatile.