DIAMOND-DEPENDENT BOTSWANA AIMS TO DIVERSIFY ECONOMY

Thu 13 February 2025:

With the diamond industry facing an uncertain future, Botswana is seeking to develop industries such as agriculture, copper mining, and tourism to diversify its economy, the country’s vice president said on Monday.

“Botswana’s reliance on diamond revenues has been both a strength and a vulnerability. To secure Botswana’s future, we must diversify the economy by expanding key sectors such as tourism, agriculture, manufacturing, information technology, and healthcare,” said Ndaba Gaolathe, vice president and minister of finance, while presenting the first budget of the 13th Parliament in the capital, Gaborone.

Gaolathe said that the diversification of the mining sector and a strong focus on mineral beneficiation are central pillars of their approach.

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Companies such as Khoemacau Copper Mine, which was acquired by a Chinese metal miner for 1.88 billion U.S. dollars, will play a crucial role in addressing unemployment, he said. The company is embarking on an expansion project that will increase copper production from 60,000 tons to at least 130,000 tons per year, raising the labor force from 2,000 to 4,000 employees.

More efforts to diversify the economy include developing seed production, establishing fertilizer industries to reduce reliance on imports, and modernizing the power sector by transitioning to a solar-dominated energy industry, according to Gaolathe.

Diamond mining in Botswana is facing an uncertain future due to a combination of factors. While Botswana is one of the world’s largest producers of diamonds, the industry is grappling with declining diamond prices, the depletion of major diamond reserves, and a shift in consumer demand toward synthetic diamonds.

Additionally, the global push for sustainability and ethical sourcing is putting pressure on traditional mining practices. The partnership between Botswana and De Beers, once central to its diamond industry, has also been reevaluated, with the government seeking to diversify its economy to reduce dependency on diamonds. This evolving landscape poses significant challenges for the sector’s future.

-with Xinhua

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