Botswana Imposes 24% Local Ownership Requirement for New Mines

Botswana has introduced a landmark policy reform that deepens local participation in its mining sector, officially requiring new mining ventures to allocate a 24% ownership stake to local investors. Effective from October 1, 2025, the new rule applies to all mining licences issued from that date onward and represents one of the most significant shifts in Botswana’s mining regulatory landscape in recent years. The measure forms part of the government’s broader agenda to strengthen resource sovereignty, enhance community inclusion, and ensure that the economic benefits of mining are more widely shared among Batswana citizens.

Under the revised framework, companies granted new mineral concessions must sell 24% of their shareholding to local investors if the government declines to exercise its right to purchase the stake itself. This replaces the previous arrangement under the Mines and Minerals Act, which granted the government the option to acquire a 15% interest in new mining projects, primarily designed for large-scale operations, including diamonds. The new threshold reflects Botswana’s strategic effort to rebalance value distribution in a sector historically dominated by foreign ownership, ensuring greater local equity in mineral wealth.

The policy is also designed to stimulate domestic capital formation and promote value addition within the country. Local pension funds and investment vehicles have been identified as key potential financiers for citizens seeking to acquire stakes in mining projects, thereby enabling broader participation beyond wealthy elites or established corporations. Moreover, by requiring a tangible local ownership component, the government aims to foster stronger commitments to environmental stewardship and mine-site rehabilitation, aligning with its green development agenda.

In the wider African mining context, Botswana’s 24% ownership mandate reinforces a growing continental trend toward resource nationalism, where countries seek to reclaim greater control and value from their natural resources. Similar frameworks exist in nations such as Tanzania, Zimbabwe, and Namibia, though Botswana’s approach stands out for its balance between investor security and local empowerment. While the policy may initially raise concerns among international investors regarding project financing and control, it is likely to strengthen Botswana’s reputation as a jurisdiction committed to sustainable and inclusive mining governance.

If effectively implemented, this new ownership policy could have profound implications for Botswana’s economy. It is expected to boost local capital markets, enhance the competitiveness of citizen-owned businesses, and channel a larger portion of mining profits into domestic development initiatives. In doing so, Botswana reaffirms its position as one of Africa’s most progressive mining nations, leveraging its mineral wealth not only for export earnings but also for long-term social and economic transformation.

Mini-Glossary

• Concession: A government-granted right to explore or extract mineral resources in a specific area.
• Resource Sovereignty: The principle that a nation should have full control over its natural resources and how they are utilized.
• Value Addition: The process of increasing the economic value of raw minerals by processing or refining them locally before export.
• Pension Funds: Large investment pools that collect and invest retirement savings, often used to finance major national projects.
• Resource Nationalism: A policy approach where a country seeks greater ownership or control over its natural resources to maximize national benefit.