Botswana’s De Beers Deal Is a Bet on Tech-Led Diversification
The most revealing moments of Botswana President Duma Boko’s state of the nation speech came neither in his announcement that the government would double its stake in De Beers to 30% nor in his identification of Gareth Penny’s Global Diamond Consortium as its preferred bidder. Rather, they came in the emphasis he placed on the potential upside of De Beers subsidiary Element Six.
“Our investment in De Beers is not just an investment in natural diamonds, it is also an investment in technology,” he stressed. “As the world builds superintelligence and vast data centers, demand for high-technology synthetic diamonds will surge.”
Boko said the US government had asked Element Six to partner in the technology field, pointing to President Donald Trump’s announcement of a $600 million facility in Georgia, USA. In February, the US Department of Commerce said the high-pressure, high-temperature synthetic diamond grit facility would be built under a trade agreement with Japan, with Element Six as its operator. Boko added that Element Six should be central to a new technology partnership between the US and Botswana.
Boko’s focus on the technology aspect of the investment offers some insight into where De Beers’ greatest potential lies and what its future may hold under Penny’s guidance.
The Diamond Press has long held the view that Element Six represents De Beers’ greatest long-term value. The natural diamond market has been diminished by the growing popularity of synthetic diamond jewelry, raising the economic threshold for developing and sustaining a diamond mine. Existing resources in centers such as Botswana and Namibia are also expected to be depleted over the next 30 to 50 years, a period that is not so far off in the wider scheme of a country’s development.
The impact of synthetics is already being felt. De Beers has reported consecutive losses over the past three and a half years as rough diamond sales slumped from $5.9 billion in 2022 to below $3 billion in 2025.
The slump forced De Beers to suspend operations at the Venetia mine in South Africa and sparked speculation that it will bring forward the closure of its Gahcho Kué mine in Canada to 2027. Botswana and Namibia have been the company’s profit centers, offsetting losses in South Africa and Canada and in its retail business. That leaves Element Six as De Beers’ remaining source of profit and potential value.
It is also the most promising area, given the potential use of synthetic diamonds in semiconductors, quantum physics and data center development. That potential is significant, and Element Six’s position in synthetic diamond development and research is such that De Beers may well be considered a tech company with a supplementary diamond business in years to come.
Boko’s comments may echo Penny’s sales pitch to potential investors and partners in the GDC.
However, Element Six offers Botswana far more than potential financial returns. It represents an important strategic opportunity for a country that has struggled to diversify its economy. Botswana still relies heavily on the diamond market, and its slump has severely affected the government’s ability to independently sustain healthcare, infrastructure, education and public services. As Boko highlighted in his speech, the government has struck partnerships with the UAE and Oman to invest in those areas.
That outside funding highlighted the need to develop additional sectors that can drive the country forward beyond mining over the next century and beyond. Element Six may represent the strongest avenue to provide that diversification and may become a central vehicle of the country’s growth. For example, Element Six could act as an incubator for young Batswana and entrepreneurs, while the Georgia facility could facilitate an exchange of ideas and personnel with Botswana.
That said, Element Six is essentially a UK entity. It is headquartered in Oxfordshire and conducts most of its research and development there, with strong ties to Oxford University and other local institutions. That should not change, but Boko will be thinking about how Botswana can benefit from De Beers’ synthetics unit through job creation and skills development.
As De Beers’ largest shareholder, Botswana will have greater influence over the company’s strategic decisions, Boko stressed. On the surface, taking another 15% stake in De Beers exposes the government to greater uncertainty and risk amid a struggling diamond market. Element Six elevates the investment beyond that, making it a vehicle for economic diversification and reinforcing its strategic value. It also hints at where Boko and, by extension, Penny, see the future of De Beers.
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