The Botswana government has introduced a new law requiring all diamond mining companies to sell a 24% stake in new mining projects to local investors, a move aimed at expanding citizen participation in the country’s most valuable industry.
Under the new regulation, the government reserves the right to acquire the 24% share itself if no suitable local investors are available. The rule also compels mining companies to set up environmental rehabilitation funds, ensuring that mine operators are held responsible for restoring land after extraction activities end.
Officials say the reform seeks to strengthen domestic ownership and value creation within Botswana’s diamond sector, which contributes roughly 80% of the nation’s foreign exchange earnings. By allowing citizens to invest directly in mining ventures, authorities hope to channel more of the industry’s profits back into the local economy.
The new policy comes amid growing global challenges for the diamond market — including falling prices, weaker consumer demand, and rising competition from lab-grown diamonds. These shifts have put pressure on traditional producers such as Botswana to rethink how they capture value from their mineral wealth.
Analysts say the initiative could spur local entrepreneurship and create new opportunities for Botswana’s financial and manufacturing sectors, particularly in diamond cutting and polishing. However, they warn that successful implementation will depend on ensuring transparent investor selection, sufficient financing for local participants, and strong oversight of environmental safeguards.
Botswana, long regarded as one of Africa’s most stable democracies, is now positioning this rule as part of a broader effort to maximize national benefits from its natural resources while maintaining sustainable mining practices.
