President Mokgweetsi Masisi took a significant pause before addressing the annual Natural Diamond Summit in Gaborone, a moment of reflection before unfolding a pivotal speech at the renowned Diamond Dome. The atmosphere, characterized by its earthy decor, matched Masisi’s composed demeanor. This marked his first major address to a wider audience organized by De Beers, following the government’s groundbreaking deal with the company announced on June 30.
Amidst the prolonged negotiations that tested their ties, Masisi’s words aimed to emphasize the government’s distinctive partnership with De Beers. His speech not only portrayed confidence in the natural-diamond sector, which faced adversity in 2023 but remains crucial for Botswana’s economic trajectory, but also echoed the Botswana-De Beers narrative centered around sustainability, aligning with the summit’s theme of connecting “people, planet, and product.”
“We’ve already initiated significant steps towards sustainable partnerships and collaborations, uniting industry players, government, and communities to unlock the full potential of our invaluable resource,” stated Masisi. Echoing similar sentiments, De Beers CEO Al Cook reinforced this message during the summit held from November 13 to 14.
Economic Dependency on Diamonds
Despite efforts to diversify the economy away from mining, Botswana’s economic growth continues to rely heavily on diamonds.
In his State of the Nation Address on November 6, Masisi acknowledged an anticipated growth rate of 3.8% in 2023, down from 5.8% in 2022 due to subdued demand for rough diamonds. Local economist Keith Jefferis, managing director at eConsult Botswana, highlighted this trend as a signal of the economy normalizing after the fluctuating pandemic period.
President Masisi further underscored that commodities from the mineral sector, notably diamonds, copper-nickel, and silver, accounted for a staggering 92% of total exports. In 2022, diamond mining represented approximately 20% of the gross domestic product (GDP), while diamond cutting, polishing, and trading constituted roughly 5%, as per Jefferis’s reports.
The country’s heavy reliance on diamonds remains a concern. However, Botswana’s effective management of diamond revenues stands as an exemplar of the positive societal impact these precious stones can yield.
“We’ve reshaped our economy, primarily through the discovery of diamonds, and more significantly, through the responsible stewardship of these rare and luminous treasures,” affirmed Masisi before the summit.
The government implemented a fiscal policy in 2011, stipulating that 40% of mineral revenue would be reserved as financial assets for future generations, with the remainder allocated towards infrastructure and human capital development, highlighted the President. Emphasizing a people-centric economic strategy, Masisi emphasized that fundamental amenities such as infrastructure, education, healthcare, and social welfare are treated as basic human rights for all citizens, affirming Botswana’s commitment to inclusive progress.
