Botswana is intensifying efforts to diversify its economy following a prolonged downturn in the global diamond market, which has exposed the nation’s heavy dependence on diamond exports. The slump, driven by economic uncertainty worldwide and the rising popularity of lab-grown stones, has significantly impacted government revenues and export earnings.
Diamonds account for about 70% of the country’s exports and approximately one-third of government revenue. The challenges were a central focus at the recent Botswana Mining and Energy Conference and Expo, where officials called for accelerated diversification in the mining sector. Emphasis was placed on expanding into critical minerals, attracting international investment, and aligning mining and energy strategies with global sustainability and energy transition goals.
This shift involves developing market investment opportunities, enhancing government policies, and introducing new regulations to support the mining and energy industries.
Beyond diamonds, Botswana possesses substantial coal reserves estimated at 212 billion metric tons. Speakers highlighted the potential of these resources, noting that the coal seams are widespread across the country, often at shallow depths of around 30 meters with thicknesses of 6 to 10 meters. The coal is viewed as suitable not only for clean energy production but also for petrochemical applications, such as coal-to-fertilizer processes to support agriculture and other sectors.
One speaker stressed the urgency of pivoting away from diamonds, describing the need for radical transformation in the economy. “There’s need for radical transformation because the money is not there,” the spokesperson said, adding that “before Botswana could run with many inefficiencies because Botswana was making money anyway. That gravy train is now over.”
Botswana is also actively seeking to attract more foreign direct investment to support diversification. Efforts focus on creating an investor-friendly environment better suited to modern business conditions, rather than relying on outdated approaches. This includes presenting a competitive position against other countries.
The country continues to benefit from its reputation as one of Africa’s most stable mining jurisdictions. It ranked seventh among the top 10 mining jurisdictions globally in the Fraser Institute’s 2025 mining survey, based on mineral potential and policy perception as evaluated by industry respondents.
The conference underscored the critical timing of these initiatives, as Botswana works to strengthen its resource-driven economy while adapting to changing global market dynamics.
