Botswana has begun enforcing a new rule requiring mining companies to allocate at least 24% ownership in new concessions to local investors if the government opts not to take up its share, the Ministry of Minerals and Energy announced on Friday.
The regulation, which took effect on October 1, marks a major shift in Botswana’s mining policy and aims to ensure broader domestic participation in one of the country’s most vital economic sectors.
It also seeks to promote local value addition and environmental accountability.
Under the previous Mines and Minerals Act, the government held the right to acquire a 15% shareholding in any newly licensed mining project, with the option to take a higher stake in diamond ventures.
The new provision expands that framework by mandating local private ownership where the state declines to invest.
“The 24% local ownership requirement in mining projects has entered into force,” the ministry said in a statement, adding that the policy is designed to “increase citizen participation in mineral wealth, stimulate value-adding activities, and strengthen environmental rehabilitation obligations.”
When the amendment was debated in parliament last year, then–Mines Minister Lefoko Moagi said local investors could acquire their stakes with financial backing from domestic pension funds and investment institutions, helping ordinary citizens benefit from the country’s vast natural resources.
Botswana, the world’s leading diamond producer by value and an emerging copper mining hotspot, has long relied on foreign mining giants such as De Beers and Sandfire Resources to drive growth.
The new rule reflects the government’s push to balance foreign investment with greater local empowerment in the mining industry.
Source: Reuters
Written By Rodney Mbua
