BOTSWANA URGED TO SELL OFF ITS DE BEERS STAKE

Article By: Gilbert Manenye

Investment professional and economic consultant Mphoeng Mphoeng has urged Botswana to think twice before buying a bigger stake in De Beers and instead consider following Anglo American in cutting its stake in the diamond marketing company.

Speaking at the BBS Bank Business Breakfast earlier today, Mphoeng said the diamond industry is undergoing a structural shift and not a temporary downturn as lab grown diamonds displace natural gems in key markets.

Mphoeng pointed to a break in demand noting that retailers in America which is a key market for Botswana’s diamonds has reported that lab-grown diamonds now account for as much as 95% of sales.

He argued that the country should instead hold on to its Debswana joint venture as he warned that sales of natural diamonds are unlikely to return to the prior annual sales levels.