Historically, minerals have contributed 30-40 percent of government revenues, with diamonds accounting for over 80 percent of the country’s foreign exchange earnings.
While diamonds remain central to Botswana’s economy, the industry’s traditional cycle now exposes key vulnerabilities that require an urgent collective response.
The sale of the precious stones has been dwindling over the past years, affecting the country’s revenue. This past week, the mining industry, along with other industry sector leaders, convened from October 21st to 23rd at Ditshupo Hall in Gaborone for this year’s mining show to discuss the new era of mining.
Absa Bank Botswana urges all stakeholders to collectively turn current industry vulnerabilities into opportunities by rethinking investment attraction, mining finance, and citizen inclusion.
Speaking at the 2025 mining show last week, Absa Bank Botswana Managing Director, Keabetswe Pheko-Moshagane, said, “global mining investment models are changing fast. Investors and financiers are now guided not only by ore grades and production costs, but also by ESG performance, community impact, and local participation. The capital that will flow into mining over the next decade will follow responsible, inclusive, and transparent investment structures.”
Absa Bank Botswana urges all stakeholders to collectively turn current industry vulnerabilities into opportunities by rethinking investment attraction, mining finance, and citizen inclusion.
This, she said, creates an opportunity for Botswana, but not a threat, because the Absa brand, as a nation of governance excellence and stability, aligns perfectly with these global trends.
She went on to discuss the practical models and financing trends that banks are prioritizing globally, such as community benefit agreement–linked project financing, blended finance, partial credit guarantee models, and downstream beneficiation financing.
She emphasised that, “to make this viable and sustainable, we can structure revenue share or royalty monetisation mechanisms that help de-risk lending while aligning the interests of financiers, investors, and the nation.”
She went on to add that the country must move from a model where communities are passive observers of mining activity to one where they are active stakeholders through equity, procurement, employment, and local entrepreneurship.
“At Absa Bank Botswana, we are proud to be part of this transition. In recent years, we have financed mining and mining-related projects, supporting the sector’s growth and resilience. Through our partnership with Debswana, we have disbursed over P1.5 billion to their contractors since 2020, and more than P700 million has been advanced to citizen suppliers. Furthermore, we have helped structure financing and mentoring schemes for citizen-owned businesses for about 3,000 local businesses,” she said.
As he closed the show on Thursday, the Minister of Local Government and Traditional Affairs, Ketlhalefile Motshegwa emphasized that, “today, as we reflect on the future of Botswana’s mining industry, we must affirm one central truth: the wealth of our minerals must translate into the wealth of our people.”
He urged that industry leaders must now look into rural industrialisation as the next frontier. Mining towns and surrounding villages can become hubs of small industries , producing goods, materials, and services that mines need, while creating livelihoods that endure beyond the life of the mine.
He said, “Imagine small industrial parks near Letlhakane or Jwaneng, places where young entrepreneurs manufacture components, process agricultural products, or build materials used by the mines. This is how we spread opportunity, balance regional development, and make mining the foundation of rural transformation.”
This, he said, means empowering citizens in the mining value chain, ensuring that Batswana are not only beneficiaries but active participants at every stage of the mining process, from exploration and extraction to processing, supply, marketing, and ownership. It is about transforming mining from a resource-based activity into a people-centred engine of national prosperity, he added.
Speaking to citizen participation and ownership, he went on to add that the country’s policies must make it possible for citizens, individually and through citizen-owned companies, to hold meaningful stakes in mining ventures.
Through citizen shareholding, joint ventures, and community trusts, this translates to citizens not only benefiting from jobs but from the very wealth created in their backyard. A notable example is Debswana’s citizen supply development initiatives, which have opened doors for local businesses through its Citizen Economic Empowerment Programme (CEEP).
He emphasized that the government must go further in creating an environment where every new mining licence brings with it a clear plan for citizen participation and benefit.
He also added that there must be linkages across the economy, and therefore mining must feed and strengthen other sectors such as manufacturing, agriculture, tourism, and services. Local procurement by mining companies should stimulate the country’s industries, creating jobs nationwide.
