Economic impact of De Beers on Botswana · Genesis Analytics
Here are some highlights of De Beers activity over the last nearly 15 years.

Follow the Numbers

In 2011, Anglo American PLC purchased the remaining 40% of the Oppenheimer family-owned stake in De Beers. That 40% stake worth $5.1 billion was a cash transaction. This represented a watershed moment for Oppenheimer who has owned De Beers since 1929. At the time of its sale, the value of the entire company was $12.75 billion.

That transaction made Anglo American (AAL: London) an 85% stakeholder of De Beers. The remaining 15% belongs to The Republic of Botswana.

Since then, Anglo American has devalued its De Beers holdings twice. In 2024 AAL reduced its book value by $1.6 billion. Then again in 2025 they lowered it another $2.9 billion in value to $4.1 billion.

So, the entire 85% stake is currently valued at $3.5 billion—after they paid $5.1 billion just 14 years earlier to gain Oppenheimer’s 40%

The Root of it All

Let’s face it. It’s not something as trivial as a parking ticket. Rather it represents a staggering loss. And we can point to the major cause of this tanking. It was directly related to the colossal branding misstep by former De Beers co-acting CEO, Bruce Cleaver. It was his poor judgement in 2018 that foisted LGD products under the banner of De Beers’ own brand The Lightbox.

This was an utter disaster for De Beers and the diamond brand -- so I would call it The Nightbox.

Since the annual sales of De Beers declined as that first wave of diamond consumers initially become infatuated with lab-grown diamonds, or LGD.

Here it is by the numbers -- showing diamond sales annual decline.

2022 $6.6 billion
2023 $4.3 billion
2024 $3.3 billion

But at $4.1 billion, De Beers has great value, If we take De Beers $2 billion diamond stock. I predict that De Beers will post $4-4.3 billion in sales by Q4 2025.

Promising Trends

De Beers has 60 sightholders already showing signs of interest. They want to buy the goods and have already complained that the larger stones which they need are not included in the sight. And Rapaport has begun to show a green color on its latest prices—things are looking promising.

Botswana in Focus

The agreement between Botswana and De Beers will energize both entities and increase the flow of goods between the mine and the cutting centers.

De Beers, Botswana Make New Diamond Sales Deal Official | National Jeweler

Who is a potential buyer for De Beers? The Republic of Botswana has made it clear it wants to increase its stake from its current 15%. Botswana would be the greatest owner of De Beers if they could come up with the cash, but AAL is preparing an IPO.

The business in fancy color diamonds started out strong this year and I am optimistic. I believe we are looking at a powerful rebound in 2025, with business and spirits being lifted up dramatically.

2025 will be G_d willing, a year full of Mazal and Bracha-- Luck and Blessing.

And that my friends, is our wish for you.

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