Delayed Gov’t Deal Forces HB Botswana Restructure

Company confirms ongoing process N o final decisions on staffing outcomes have been made Trade union has submitted an application for workplace recognition HB Botswana says it has begun an internal restructuring and consultation process following delays in the implementation of a government-backed deal that underpinned its plans to create nearly 500 jobs . The company's spokesperson told the Business Weekly & Review , saying the move to restructure was prompted by “commercial conditions affecting the business.” Omogolo Mathumo, the company’s communications director, confirmed that the process is ongoing. Genesis HB Botswana was established following public commitments announced in 2023, including proposed equity participation in HB Antwerp and preferential access to diamond supply through the Okavango Diamond Company (ODC). Mathumo said these arrangements have not yet been implemented. The deal involved ODC supplying an undisclosed volume of, or specifically, the "biggest diamonds" (large, high-value stones) to HB Botswana. HB Antwerp also has an agreement with Lucara Diamond Corp, the owner of Botswana’s Karowe mine, to purchase all of the mine’s large diamonds. HB Antwerp recently handled the pink Type IIa diamond from Lucara’s Karowe Mine in Botswana, weighing in at 37.42 carats. It has deep experience with Karowe’s output—ranging from the 1,758-carat Sewelô to the 549-carat Sethunya and more recent recoveries such as the 2,488-carat Motswedi and the 1,094-carat Sereti. But Mathumo said because the ODC deal did not materialise, this "absence has had a material effect on the operating environment, requiring the company to reassess its current structure to ensure sustainability". In 2024, the then-government, led by former president Mokgweetsi Masisi, set aside P890 million to acquire shares in the Belgian diamond trader, according to national budget estimates. This followed Masisi’s final State of the Nation Address, in which he said the government had yet to finalise a deal that would give Botswana a 24 percent stake in HB Antwerp. In previous engagements with this publication, the company’s management said the due diligence phase had been completed and that while the Government of Botswana was preparing to share draft contracts, no equity transaction had occurred. The company has also previously stated that the equity proposal originated from the government and was not initiated by Genesis HB Botswana. HB Antwerp established its first operation outside Antwerp in Botswana in March 2023 under the name HB Botswana. The expansion was expected to create more than 450 jobs in Botswana by 2026. HB advanced its processing capacity in Botswana with a P137 million investment, aiming to create hundreds of high-quality jobs and positioning Botswana as a leading hub for diamond innovation on the African continent. Asked whether the restructuring involves staff layoffs, Mathumo said no final decisions on staffing outcomes have been made. He said consultations are underway in line with the Employment Act. Employees have indicated a preference for union representation, and a trade union has submitted an application for workplace recognition, which is being considered within the timelines set out in the Trade Disputes Act. Mathumo said Genesis HB Botswana remains committed to engaging with employees and their representatives in accordance with the law. “The company’s objective is to manage this period responsibly and transparently, while working toward a stable and viable operation in Botswana,” he said.

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