Diamonds are seen during an exhibition in Gaborone, Botswana, November 23, 2015.
Previously, under the Mines and Minerals Act, the government had the right to acquire a 15% shareholding in any licensed mining concession, with the possibility of taking a larger stake in diamond projects. The new rule expands local participation in mining ventures and forms part of Botswana’s broader efforts to enhance domestic involvement in the country’s resource sector.
Botswana, recognized as the world’s leading diamond producer by value, is also emerging as a key copper mining destination in southern Africa. The Ministry stated that the revised regulation aims to ensure greater national benefit from mineral resources, foster value addition within the country, and promote sustainable mining practices through the establishment of environmental rehabilitation funds.
“The requirement for 24% local ownership in new mining concessions has now entered into force,” the Ministry said in its statement. It emphasized that the policy reflects the government’s commitment to improving local participation and strengthening Botswana’s mining supply chain.
The proposal for the ownership rule was first introduced in 2023 as part of draft legislative amendments to the Mines and Minerals Act. However, no timeline for implementation had been previously announced until the official statement confirming its enforcement this month.
During parliamentary discussions on the amendment, Botswana’s former mines minister highlighted that local investors would be able to purchase stakes in new concessions with financial support from domestic pension funds. This approach aims to make the policy accessible to local entities and ensure that ownership opportunities extend beyond major corporations to include local investors and institutions.
Analysts view the move as part of Botswana’s ongoing strategy to diversify its mineral economy and increase national returns from natural resource exploitation. The government has also emphasized that the policy is designed to encourage value-adding industries such as mineral processing and manufacturing, helping to create jobs and retain more economic benefits within the country.
By combining greater local ownership with stronger environmental and social requirements, Botswana seeks to balance resource development with long-term sustainability. The introduction of the 24% local stake requirement aligns with the government’s vision of expanding community participation and supporting national economic growth through responsible mining investment.
With this change, Botswana continues to modernize its mining framework to attract both foreign and domestic investors while ensuring that a larger share of the country’s mineral wealth benefits its citizens and supports sustainable industrial development.
