IMF warns Botswana against buying De Beers

President Duma Boko and the Minerals and Energy ministry are reportedly hammering out an agreement with financiers to support the country’s bid to takeover Anglo American’s 85% stake in De Beers. Such a move would hand Botswana absolute control of the diamond giant and Boko has said he would then accommodate equity requests from other strategic players such as Angola.

Anglo’s stake in De Beers is estimated at between $3 billion and $5 billion. This week, researchers at the IMF concluded that Botswana’s fiscal position is in choppy waters, marred by dwindling revenues coupled with pressures from rolling deficits.