By: Trendsn Africa

Botswana has enacted a new mining rule to promote local ownership. Effective October 1st, the change to the Mines and Minerals Act requires companies to sell a 24% stake in new mining concessions to local investors, but only if the government chooses not to purchase the shares itself.

This replaces the previous law, which gave the state the right to buy a 15% shareholding. As the world's top diamond producer by value, Botswana is actively seeking to increase local control over its mineral resources.

The policy shift comes as the country faces significant economic challenges. With diamond sales revenue falling 50% in 2024 due to weak demand and competition from synthetic stones, Botswana has struggled to finance its budget. The International Monetary Fund (IMF) projects the economy will contract for a second consecutive year, with GDP expected to fall by 0.4% in 2025 after a 3% shrinkage in 2024.