Post #375

All Guts, No Brains 💎 Botswana intends to buy a diamond giant despite having no money and IMF alarms 🌐Botswana's president Duma Boko reaffirmed the intention to buy thedying diamond major De Beers. In early December, the International Monetary Fund (IMF) recommended that Botswana abandon the purchase in the face of budget deficits and the dubious future of natural diamonds. 🏷 De Beers is a once-great diamond company that held a global monopoly over the diamond trade in the mid-20th century. De Beers’ main trump cards were its control over diamond trading networks and marketing — its slogan “A Diamond is Forever” became one of the most famous slogans in the world. 🔴 Since the early 21th century, the company has been in crisis due to the loss of its trading monopoly and the rise of lab-grown diamonds. Today the current owner, Anglo American Plc, wants to sell its 85% stake, while Botswana has long declared its desire to acquire the majority share. The price tag is $4.1 billion. 🇧🇼 For once, the IMF offered good advice — but Botswana’s Duma Boko apparently didn’t need it. Despite shrinking diamond revenues and falling demand, the president believes he can make both diamonds and Botswana great again through better marketing. “Diamonds are not selling due to the process being used, and we have to overhaul it,” he said. ⏩ Boko may well portray the potential acquisition as restoration of Botswana's control over its diamonds, but in reality the state is simply going to waste an amount equivalent to 73% of its annual revenue (which was $5.6 billion in 2024) to buy a hopeless asset. ➡️ Follow to stay informed - @devilsbelow