Angola's Endiama Eyes De Beers, But Funding Unclear

Angola's state-owned diamond company, Endiama, has its sights set on a piece of De Beers. However, the Angolan government won't be funding this acquisition through its national budget, as Finance Minister Vera Daves de Sousa recently clarified.

Endiama's Interest and Funding Challenges

Endiama had previously expressed interest in purchasing a smaller stake in De Beers. This interest arises as Anglo, De Beers' parent company, is divesting parts of the diamond giant to focus on copper and other clean energy metals. However, when questioned about funding, the finance minister was clear: the deal is not included in next year's budget.

This leaves Endiama in a difficult position. The minister suggested that if Endiama proceeds with the acquisition, it will have to secure the funding independently. De Beers is valued at approximately $4.9 billion, but it has faced challenges recently, reporting $3.5 billion in losses over the past two years.

Botswana's Stake and Potential Tensions

Angola isn't the only country with an interest in De Beers. Neighboring Botswana, which already owns 15% of the company, views De Beers as a critical asset. Botswana sources 70% of its rough diamonds from De Beers, making it a strategic priority for the country.

This could lead to tensions between Angola and Botswana, as both nations see De Beers as vital to their economies. With only one likely to succeed, Endiama will need to navigate this high-stakes situation carefully if it hopes to secure a deal.