From Mines to Minds

For decades, Botswana’s economic story has been defined by diamonds. The country is the world’s leading producer of gem-quality stones, and revenues from this sector have underpinned national growth since independence. But with the global diamond market facing a downturn, Botswana is moving decisively to accelerate its diversification agenda.

“Botswana has a beautiful story to tell,” reflected Tapiwa Masie, CEO of the Special Economic Zones Authority (SEZA). “But we are now moving to a phase where we want to diversify. We cannot rely on diamonds only. We need to create jobs, innovate, and find other opportunities for the country.”

The government’s diversification strategy is centered on transitioning to a knowledge-based economy. The Ministry of Communications and Innovation has been tasked with driving this shift, underlining digitalization as both a necessity and an opportunity. “My mandate is clear: digitalize the economy,” said Minister David Tshere. “As the President told me, either I digitalize or I’m out.”

This transformation is already underway. Mobile penetration exceeds 150% and coverage stands at around 80%, but high connectivity costs—averaging $3.50 per unit compared to $1 in South Africa—highlight the need for reform.

Tshere’s ministry is addressing this through shared infrastructure agreements and the creation of the OneGov platform, a centralized digital hub for citizen services. “We’re moving from connectivity to service delivery—online pension payments, ID renewals, revenue collection,” Tshere explained.

The private sector is also playing a critical role. Agriculture and food security, long a cornerstone of Botswana’s economy, are receiving fresh momentum from companies like Seed Co International. Headquartered in Botswana and listed on the Botswana Stock Exchange, Seed Co operates in 17 African countries.

“Botswana has been a relatively small but profitable market for us,” said Samson Ruwisi, Managing Director of Seed Co Botswana. “But its stable investment climate, strong pula, and absence of exchange controls make it a vital treasury hub for our expansion across Africa.”

Through SEZA, Botswana is adding another layer of reform by aligning infrastructure with sectoral priorities. The Sir Seretse Khama International Airport Special Economic Zone, launched in late 2024, now offers 92 fully serviced plots, and similar projects in Pandamatenga and Sowa are designed to catalyze agriculture, logistics, and mineral beneficiation. “Investors just need to come and build,” Masie said.

Beyond the Delta

Tourism, already the second-largest income earner after diamonds, is taking on heightened importance in Botswana’s diversification strategy. The Okavango Delta remains the jewel in the crown, drawing visitors from around the world for its exclusive wildlife experiences. Yet policymakers are determined to broaden the country’s appeal.

“Tourism is the second-largest income earner in Botswana, and with diamond sales currently depressed, we see this moment as an opportunity for the sector to step up,” said Wynter Mmolotsi, Minister of Environment and Tourism. “Our current focus is on diversification—heritage, cultural, city tourism, and even mining tourism, to leverage our reputation for diamonds.”

New initiatives are extending beyond the Delta. On September 4th, the Ministry will launch city tourism, designed to attract visitors to Gaborone for nightlife, cuisine, and cultural activities. Dam tourism is also emerging, with the Gaborone Dam awarded to local developers for new resorts and water-based activities. “We want to increase tourist stays by two or three days beyond the typical Delta visit,” Mmolotsi said. “That’s essential not just for revenue but to ensure local communities benefit meaningfully from tourism.”

Sustainability remains the cornerstone. Botswana maintains a low-volume, high-value model in sensitive areas like the Delta while expanding access for citizen-owned businesses. The government is also addressing tourism “leakages,” where much of the revenue from foreign visitors is captured abroad. “Currently, tourists pay outside Botswana, and the funds that enter the country are minimal,” Mmolotsi explained. “We’re engaging directly with operators to develop equitable, win-win partnerships.”

The figures back this up: the government aims for a 12% increase in tourist arrivals in the next two years, with safari tourism alone projected to generate 4 billion pula by 2030. For Botswana, tourism is not just about conservation—it is about transforming natural capital into sustainable growth.

Diamonds—and What Comes Next

While diversification is the priority, mining continues to anchor Botswana’s economy, and the government is determined to extract greater value from its resources. The focus is shifting from extraction to beneficiation, creating jobs and revenue streams through cutting, polishing, and processing activities.

“Botswana’s salt, for example, is high-quality and valuable in industrial processes,” noted SEZA’s Masie, referencing the new private-sector-led SEZ in Sowa anchored by the Botash mine. Zones in Selebi-Phikwe and Francistown are being positioned for steel, gold, and emerald beneficiation, while Lobatse is slated to become a “meat and leather city,” combining agriculture with downstream manufacturing.

Diamonds remain at the center of this strategy, but the narrative is evolving. Kelotsositse Olebile, CEO of the Botswana Investment and Trade Centre (BITC), highlighted the importance of branding. “There’s been a global shift toward lab-grown diamonds,” he said. “These are marketed as ‘clean’ and ‘green,’ but they use mined materials like graphite and methane gas. Natural diamonds are the result of a geological miracle over millions of years. You can’t replicate that in a lab and call it the same.”

Seed Co’s Ruwisi added that agriculture and mining can develop side by side, offering opportunities for investment in both food security and mineral beneficiation. “Economic diversification is clearly a key priority for the current leadership,” he said. “Mining beyond diamonds is a potential opportunity, and agriculture—where Botswana has available land and labor—remains central to food security.”

Stability is the Strategy

Underpinning all of these ambitions is Botswana’s reputation for governance. The country is consistently ranked among Africa’s most stable democracies, with transparent institutions and strong rule of law. This is more than a matter of pride—it is a foundation for attracting investment.

“We are a safe, democratic, business-friendly jurisdiction. There is nothing to fear,” said BITC’s Olebile. “We want the world to understand that everything built in Botswana is the result of deliberate national effort. At independence, we inherited very little. What makes us different is that we nationalized our resources—diamonds belong to the nation, water belongs to the people.”

Botswana’s governance advantages are matched by its investor-friendly frameworks. SEZA’s tax regime—5% corporate tax for 10 years, 10% thereafter—stands as one of the most competitive in the region. Coupled with stable monetary policy, absence of exchange controls, and a solid credit rating, Botswana presents a compelling case for long-term stability.

Digital governance reforms are further strengthening this foundation. Minister Tshere’s Digital Services Business Bill creates a regulatory authority to oversee interoperability, data integrity, and digital standards across ministries, ensuring transparency in the rollout of new services. At the same time, the Cybersecurity Bill and certification programs for IT professionals are modernizing both public and private sector operations.

A Confident Outlook

Across government and the private sector, Botswana is aligning its strengths—natural resources, human capital, institutional stability—with a vision of inclusive growth. From satellite launches and digital IDs to heritage tourism and grain storage, the projects are diverse but united by a common thread: readiness for the future.

“Here is Botswana—your leading and most attractive investment destination in Africa,” said BITC’s Olebile. “Yes, we have been overly dependent on diamonds, but diversification is now our top priority. And you cannot diversify without building industries.”