Gaborone, Botswana – The Government of Botswana has introduced a major amendment to its Mines and Minerals Act, aimed at increasing local participation in the mining sector.

Under the new regulation, which took effect on October 1, the state will no longer automatically purchase a 15% stake in mining concessions. Instead, companies are now mandated to sell a 24% shareholding in new concessions to local investors if the government opts not to acquire the stake itself.

According to the Ministry of Mines and Energy, this change is part of a broader national strategy to ensure that Batswana benefit more directly from the country’s rich mineral resources.

Boosting Local Value and Economic Sustainability

Botswana — the world’s leading diamond producer by value — is seeking to strengthen local ownership and encourage value addition within its mining industry. The move comes as part of efforts to revitalize the economy amid declining diamond revenues.

The southern African nation has been facing reduced earnings from diamond exports, largely due to weakened global demand and the growing popularity of synthetic diamonds. As a result, government revenues dropped by 50% in 2024, placing significant strain on public finances.

Economic Outlook Remains Challenging

The International Monetary Fund (IMF) projects that Botswana’s economy will contract for a second consecutive year. Gross Domestic Product (GDP) is expected to decline by 0.4% in 2025, following a 3% contraction in 2024.

Economic analysts say the government’s new mining rule could help diversify revenue streams and empower local investors, though the full benefits may take time to materialize.