Botswana Considers Renegotiating Its Proposed Purchase of a Stake in Belgian Gem Dealer HB

Background

In March 2023, the southern African nation of Botswana declared its plan to acquire a 24% stake in HB Antwerp, a specialist in polishing rough diamonds. The move was part of Botswana's strategy to increase its participation in the diamond industry value chain.

Renegotiation Considerations

However, recent reports suggest that Botswana is now considering renegotiating the proposed purchase. According to sources, the government is concerned about the potential financial implications of the deal and the impact it could have on Botswana's diamond industry.

Financial Concerns

In February, finance ministry budget documents revealed that Botswana had allocated 890 million pula (approximately $78 million) for the purchase. The government is now reportedly concerned that this amount may not be sufficient to cover the full cost of the stake, including additional expenses such as due diligence and legal fees.

Industry Impact

Additionally, the government is said to be worried about the potential impact the deal could have on Botswana's diamond industry. Some analysts believe that the purchase could give HB Antwerp an unfair advantage over other diamond companies operating in Botswana.

Next Steps

The government of Botswana has not yet officially commented on the reports of a potential renegotiation. However, it is expected that the issue will be discussed in the near future.

Conclusion

The Botswana government's decision to consider renegotiating its proposed purchase of a stake in HB Antwerp is a significant development. The outcome of the renegotiation will have a major impact on Botswana's diamond industry and its relationship with HB Antwerp.