Botswana enforces 24% local ownership rule in mining sector

The Karowe Diamond Mine in Botswana (Source: Lucara Diamond)

Botswana has officially enforced a new regulation requiring mining companies to sell a 24% stake in new concessions to local investors if the government decides not to take the share itself, the Ministry of Minerals and Energy confirmed on Friday.

The rule, which came into effect on 1 October, is part of amendments to the Mines and Minerals Act aimed at strengthening local participation and economic empowerment in the country’s lucrative mining industry.

Under the previous framework, the government was entitled to a 15% stake in new mining ventures, with flexibility for higher ownership in diamond projects. The new rule now extends that opportunity to local investors, including through potential backing from domestic pension funds.

Officials say the policy will not only increase local ownership of Botswana’s natural resources but also promote value addition and ensure that companies establish environmental rehabilitation funds to support long-term sustainability.

Botswana, the world’s leading diamond producer by value, is also emerging as a regional copper mining hotspot, and the new rule is seen as a move to secure greater national benefit from the sector’s growth.