The Botswana government has in mind a consortium with partners such as the Oman Investment Authority and/or Angola’s Endiama to spread the risk of any acquisition. Even so, taking control of a loss-making business would still require significant borrowing, placing real strain on Botswana’s public finances. Despite significant challenges, Botswana is the only mainland country in sub-Saharan Africa with investment-grade sovereign debt.
Buying a controlling stake in De Beers risks putting that hard-won credibility at stake. Whether the investment makes sense comes down to two questions: can De Beers be successfully turned around under state ownership, and are there alternative uses of Botswana’s sovereign resources that would better secure the country’s long-term future? As reported elsewhere in this publication, the country’s school uniform industry is being shaken by widespread smuggling, fronting and deceit.This is not just a business issue, but a direct attack on a national policy designed to build Botswana’s own economy and protect Batswana jobs.We call on the Ministry of Education, the Botswana Unified Revenue Service (BURS), the Police and all relevant bodies to take immediate and decisive action to…
