Botswana has made a significant shift in its mining policy with the entry into force on 1 October of a rule that requires companies obtaining new concessions to cede a 24% stake to local investors, provided that the state does not exercise its pre-emptive right of purchase. The measure aims to ensure that more of the country's mineral wealth remains in the hands of its citizens.
The Ministry of Minerals and Energy has explained that the new regulation is part of a package of reforms to the Mines and Minerals Act, designed to modernise the management of the sector and increase its impact on the national economy. The change replaces the previous model, which only guaranteed the government a 15% share, and responds to a growing demand for greater equity in the distribution of benefits.
In addition to encouraging local participation, the regulations require companies to establish environmental rehabilitation funds and promote processing and value-added activities within the country, rather than exporting raw resources. The aim, according to ministry sources, is to move Botswana away from exclusive reliance on extraction and become a more competitive player in the global mining value chain.
The new legal framework also includes mechanisms to facilitate the entry of domestic investors by mobilising local capital, including pension funds. In doing so, the government aims to foster a financial ecosystem capable of sustaining mining projects without relying exclusively on large international groups.
Industry experts believe that the measure could alter the dynamics of future licence negotiations, especially in copper and diamond projects, two pillars of the country's economic growth. However, they warn that its success will depend on transparency in the valuation of assets and the clarity of the award process.
With this decision, Botswana reaffirms its commitment to a more sovereign and sustainable development model, in which subsoil wealth is translated into real opportunities for its people.
Source: nairametrics.com; botswanalaws.com