Uanguta breaks silence on De Beers stake acquisition

Bank of Namibia governor Ebson Uanguta has thrown his weight behind discussions on a possible Namibian stake in De Beers, arguing that it is logical for a diamond-producing nation to own a share in the companies that profit from its resources, even as negotiations over the mining giant's future remain unresolved.

Speaking at the central bank's monetary policy briefing this week, Uanguta said a dedicated team was still assessing the opportunity and that government had yet to receive a comprehensive update on the status of negotiations.

"I think that negotiation is still on. We are still to get a full update on how far that negotiation is," he said in response to questions from Namibian Sun.

"Of course, as a country that is producing diamonds, it makes sense to have a stake in the products that you are producing."

However, he cautioned that key considerations still needed to be assessed, including the size of any stake Namibia could realistically acquire and the timing of such an investment.

"We have not yet received that full information. I think there is a dedicated team that is really looking into that. And then we will possibly be getting that update later," he said.

'A dead horse'

Not everyone is convinced.

Economist Omu Kakujaha-Matundu dismissed the proposal, arguing that the rise of synthetic diamonds has fundamentally weakened the investment case.

"You don't buy a dead horse," he said.

"Why don't they leave it in the hands of Anglo American as is and get taxes and royalties? Government should stay clear of this and reconsider buying a stake."

Independent economist Robin Shearbourne described any acquisition as a major wager on the future of natural diamonds.

"It is a big bet on the future of natural diamonds," he said, adding that the merits of such an investment could only be assessed over the long term.

"This can only be a long-term investment."

Shearbourne also raised a number of governance and financing concerns. How would government shareholders ensure sufficient marketing investment to sustain global demand? How would difficult decisions be taken in a company jointly owned by Botswana, Angola and Namibia? And given government's mixed record in managing commercial enterprises, would decisions be driven by commercial realities or political considerations?

He also questioned whether spending billions on De Beers represented the best use of public funds.

"Would there be better investments that the government could make for N$3 billion, for example buying out the Iranians and South Africans from Rössing?" he asked.

"And where is the government going to get N$3 billion from?"

Labour commentator Herbert Jauch said Namibia should have sought a larger stake in De Beers when the diamond industry was stronger.

"Namibia needs to be careful not to allow Anglo to make a huge sale and leave Namibia with an asset that is in decline. One should be careful not to spend public funds on an industry that is in decline," he said.

Jauch added that even a controlling stake would not shield the industry from global market realities.

"Even if a controlling stake is acquired, the diamond industry is still dependent on exports. What is the short- and long-term scenario before a decision is made?" he asked.

Deal could close within weeks

Despite the scepticism, the sale process appears to be gathering momentum.

Reuters recently reported that De Beers chief executive Al Cook believes a transaction could be concluded within weeks rather than months, suggesting negotiations have entered their most advanced phase since Anglo American announced plans to dispose of its majority shareholding.

Anglo American owns 85% of De Beers, while Botswana holds the remaining 15%.

In November 2025, Namibian Sun reported that Cabinet had granted in principle approval for Namibia to participate alongside Botswana and Angola in pursuing a stake in the company.

Namibia was reportedly considering acquiring between 10% and 15% of De Beers, a move that could cost between N$9.8 billion and N$14.8 billion based on Anglo American's valuation of its shareholding. If realised, the transaction would rank among the largest strategic investments ever contemplated by the Namibian government.

Namibia already owns 50% of Namdeb and Debmarine Namibia through its long-standing partnership with De Beers, but it has no direct shareholding in the parent company.

Reuters reported this week that Angola, which had initially indicated interest in a minority position, has since escalated its ambitions and submitted a bid for a controlling stake.