Botswana Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in botswana, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Mining & Minerals
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Overview

Botswana’s mining industry remains one of the most lucrative globally, particularly in diamond mining, where Botswana is the world’s second leading producer by value.  Debswana, a 50:50 joint venture between the GoB and De Beers, is the primary mining company.  However, the sector’s performance is closely tied to global demand, which has recently experienced mixed results, including a decline in supply and demand for natural diamonds.  Despite contributing approximately one-third of total revenues and 85 percent of foreign earnings, long-term trends show declining mineral revenues due to rising costs, particularly in the diamond industry.  This underscores the need for accelerated diversification efforts to build an export-led economy.

The GoB is actively encouraging investment in non-diamond minerals to reduce dependence on diamonds.  Significant resources include copper and nickel, with companies like Sandfire Resources, which operates Motheo Copper Mine, and MMG, a subsidiary of China MinMetals Corp, which acquired Khoemacau Copper Minein 2024, NexMetals Mining Corp., which acquired the Selebi Mine and the Selkirk Mine, and NIU Invest, which acquired Tati Mine, operating in this space.  Botswana also has substantial coal reserves of approximately 200 billion tons, alongside other mined minerals such as soda ash, gold, silver, semi-precious stones, granite, and untapped reserves of uranium, lead, and zinc.

Botswana has established key entities to support the mining sector’s development:

  • Diamond Hub: Focuses on transforming Botswana into a competitive diamond center, emphasizing rough and polished diamond trading.
  • Diamond Trading Company Botswana (DTCB): Has the capacity to value 45 million carats annually.
  • Minerals Development Company Botswana (MDCB): Manages GoB interests in mining companies and seeks new investment opportunities.
  • Okavango Diamond Company (ODC): Recently signed a 10-year sales agreement with De Beers, increasing its allowance to sell Debswana’s diamond production from 25 percent to 30 percent, with potential growth to 50 percent during the optional extension period.  The agreement also includes a 25-year extension of Debswana’s mining license.
     

Botswana is positioning itself to gain majority control of De Beers, potentially reshaping the diamond industry.  Additionally, significant investments are planned to market natural diamonds, with Botswana playing a central role in growing the demand within the luxury segment.  While De Beers’ rough diamond production declined by 36 percent in Q2 2025, sales increased by 14 percent in value compared to Q2 2024.

The mining equipment market in Botswana is dominated by U.S.-based companies, with equipment primarily supplied through distributors in South Africa.  This results in understated import values from the United States.  All heavy equipment and machinery are imported, as there is no local production or assembly.  Local distributors focus on light industrial equipment, such as switches, pumps, and cleaning tools, while mines prefer high-quality, durable equipment with robust warranties, making them less price-sensitive than other industries.

Botswana’s mining sector offers diverse investment opportunities, driven by government efforts to diversify the economy and attract foreign investment.  The regulatory framework provides stability, emphasizing transparency, community engagement, and environmental protection.  A recent amendment increasing local ownership of mining projects from 15 percent to 24 percent aims to strengthen the link between mineral wealth and societal benefits.

Sub-sector Best Prospects 

Mining equipment, services, base metal processing, mineral prospecting, and consulting are sub-sector prospects.   Botswana wants to capture more of the diamond production value chain including trading, cutting, and polishing.  

Opportunities 

he Government of Botswana actively promotes investment in the mining sector, offering opportunities in exploration, mining, and mineral processing.  While diamonds remain central to the industry, the government is focused on diversifying its mineral resources by attracting international investments in critical minerals such as uranium, graphite, and lithium.

The Diamond Hub, established in 2008 and housing the Diamond Technology Park, aims to attract diamond technology companies and focuses on four key areas: diamond cutting and polishing, rough and polished diamond trading, diamond jewelry manufacturing, and support industries.  Beyond diamonds, investment opportunities exist in copper, nickel, and other base metal processing, as well as prospecting and surveys of untapped reserves of uranium, lead, and zinc.

The Botswana Chamber of Mines has identified local companies with mining licenses but insufficient capital to develop their mines, creating opportunities for joint ventures.  Investors can also acquire shareholding in existing mining projects, such as the copper mining project in Selebi Phikwe and the manganese project in the Kanye area, or participate in new projects, including coal-to-liquid fuels, coal bed methane, and iron ore explorations.
The U.S. Development Finance Corporation (DFC) and the Export-Import Bank (EXIM) have expressed interest in Botswana’s mining sector, with EXIM issuing non-binding “Letters of Interest” to two companies in the critical minerals space in July 2025.

Resources:

  • Ministry of Minerals and Energy
  • Botswana Geoscience Institute
  • Botswana Ministry of Trade and Entrepreneurship
  • Botswana Unified Revenue Services (BURS)
  • Diamond Technology Park

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