MTE EXHIBITIONS •
DOING BUSINESS IN BOTSWANA :
PART 2 – WORD ON THE GROUND
By Sharyn Macnamara
Business insights in Part 2 of the African Mining series “ Doing business in Botswana ” reveal the growing opportunities and requisite challenges these bring to a country known for its solid government investment growth strategy and political stability .
Part
1
1 – “ It ’ s back to business in Botswana ” – covered sound motivation for a repeat of Mining and Technical Exhibitions ’ ( MTE ’ s ) annual ‘ Botswana Combo ’ trilogy expo tour in the mining and power sectors in Botswana this March . These were reinforced by Andrew Macnamara , operations director at the company , when he visited the country mid-January this year .
Diamonds are forever ‘ Word on the ground ’ is that “ the mining and power industry in Botswana is upbeat , despite the downswing in diamond and coal pricing , with maintenance taking precedence at the moment in many operations . The pricing trends have induced cost curbing , which of course means it is time to maintain relationships and offer innovative , cost-effective solutions across the board ,” said Macnamara .
These trends were already highlighted when President Mokgweetsi Masisi delivered his State of the Nation Address ( SONA ) on 6 November 2023 – Botswana still depends on diamonds for economic growth , despite government strategy to diversify the economy . Masisi noted that the economy is expected to grow only 3.8 % in 2023 , compared to 5.8 % in 2022 , predominantly due to weak demand for rough diamonds . Economists have intimated that this growth rate also indicates the normalisation of the economy after the turbulent COVID-19 period . Mineral commodities including diamonds , copper-nickel and silver , made up 92 % of total exports , while in 2022 diamond mining made up around 20 % of gross domestic product ( GDP ) and diamond cutting , polishing and trading made up about 5 %.
Freepik . com
Botswana still depends on diamonds for economic growth , despite government strategy to diversify the economy .
Supplied by De Beers Group
Rough Diamond Sales . www . africanmining . co . za African Mining Publication African Mining
African Mining • March 2024 • 23