Botswana wants to disrupt the global diamond business

By Yinka Adegoke

Botswana’s acquisition of a 24 percent stake in a Belgian diamond company is one of the most ambitious attempts by an African country to move beyond extracting minerals to adding more value.

The three-year-old HB Antwerp is worth “hundreds of millions” of dollars, co-founder Rafael Papismedov told Semafor Africa. The investment will help the company open a new facility in Botswana and hire about 350 more people by 2026.

“Diamonds remain the mainstay of our economy,” said Botswana’s Minister of Minerals and Energy Lefoko Moagi, speaking during the announcement of the partnership in late March. “And indications are that they will remain so for the foreseeable future.”

The diamond sector accounts for some 20 percent of Botswana’s gross domestic product (GDP) and over 90 percent of its foreign export earnings and just over 30 percent of government revenue.
Botswana’s government is also keen for more transparency using HB’s proprietary platform to be able to trace diamonds from source to the consumer. “The legacy of the diamond industry is that everything is built on trust and a handshake,” Papismedov told Semafor Africa. “As disruptors we say don’t trust, verify.”

As the world’s second-largest diamond producer, Botswana is already well-established within the global diamond supply chain but not just because it has some of the world’s highest-quality gems. The government has a joint venture with the world’s second-largest diamond manufacturer, De Beers and also owns a 15 percent stake in the company.