Botswana, the world’s leading diamond producer by value, has introduced a new rule that requires mining companies to sell a 24% stake in new concessions to local investors if the government declines to purchase it. The policy, proposed last year, aims to strengthen local ownership of the country’s mineral wealth, encourage value-adding activities within Botswana, and mandate environmental rehabilitation funds from mining firms. For decades, the southern African nation has partnered with De Beers under long-standing mining agreements. However, Botswana’s economy has recently faced pressure from a global diamond downturn, fueled by oversupply and waning demand, particularly as lab-grown diamonds gain popularity. The new legislation reflects a strategic move to safeguard national interests while supporting local participation in the diamond industry.
SEMAFOR
