Botswana, the world’s largest producer of diamonds outside sanctioned regimes, is proposing new legislation that mandates mining companies to allocate a 24 percent stake to citizens.
Currently, the government has the option to acquire a 15 percent share in any licensed mining operation but often chooses not to exercise this right. Under the proposed amendment to the Mines and Minerals Act, if the government opts out of acquiring the 15 percent stake, the mining license holder would be required to make a 24 percent stake available to the public.
Since the discovery of diamonds in Botswana in 1967, the country’s economy has seen a significant transformation, with diamond sales now accounting for three quarters of its foreign exchange earnings. However, recent figures from the central bank indicate a notable decline in rough diamond sales in the first half of this year, totaling $1.287 billion.
The proposed legislative changes aim to ensure broader citizen participation in the benefits derived from the country’s mineral wealth, reflecting Botswana’s ongoing efforts to enhance local ownership and economic empowerment.
