GABORONE, in a bold move to keep more of its mineral wealth at home, Botswana has introduced a new rule requiring mining companies to sell nearly a quarter of their stakes in new projects to local investors.
The change, which took effect on October 1, marks a significant shift in the country’s Mines and Minerals Act. Previously, the government had the option to purchase up to 15% of any mining concession. Now, if the state chooses not to buy in, companies must instead offer a 24% share to Botswana investors.
Officials at the Ministry of Mines and Energy say the reform is part of a broader push to deepen local participation in a sector long dominated by foreign corporations. Botswana, well-known as the world’s leading diamond producer by value, hopes the rule will spark homegrown investment and ensure that the profits from its mineral riches circulate within the country.
But the timing also reflects growing economic strain. Weakened global demand for diamonds and the rise of synthetic stones have slashed export earnings. Government revenues from diamond sales dropped by half in 2024, leaving the national budget under pressure. The International Monetary Fund expects Botswana’s economy to contract for a second consecutive year, forecasting a 0.4% GDP decline in 2025 following a 3% slump in 2024.
Botswana is in the bid to foster economic adjustment, to support her sovereignty and survival. As this attempt will make families feel the pinch of slower growth and fewer jobs, the leadership believes that the local ownership of the mines policy, could rekindle a sense of national stake in the country’s most valuable industry.
Whether this new approach will transform Botswana’s fortunes or simply shift who bears the risks, remains a political-mystery to unravel. But one thing is clear, the country is determined to ensure that its diamonds and their profits, shines closer to home.
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