Diamond Slump Pushes Botswana to Broaden Mining Base
•February 10, 2026
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Why It Matters
Diversifying beyond diamonds shields Botswana’s fiscal health from volatile gemstone markets and positions the country as a strategic supplier of clean‑energy minerals.
Key Takeaways
- •Diamond revenues cover ~33% of Botswana’s budget.
- •Only 30% of Botswana’s land has been explored.
- •New state firm will map geology for non‑diamond minerals.
- •US interest links Botswana to clean‑energy supply chains.
- •Diversification targets copper, cobalt and other critical resources.
Pulse Analysis
The diamond market’s recent downturn, driven by soft consumer demand, high inventories and the rise of lab‑grown stones, has exposed the vulnerability of economies that depend heavily on a single commodity. Botswana, which derives about a third of its fiscal revenue and three‑quarters of its foreign‑exchange earnings from diamonds, now faces a fiscal squeeze that could ripple through public services and infrastructure projects. This pressure mirrors a broader shift across southern Africa, where traditional gem‑focused nations are reassessing their resource strategies amid changing global tastes.
In response, Botswana is launching a state‑owned exploration entity tasked with generating high‑resolution geological maps and de‑risking investment in non‑diamond assets. By targeting copper, cobalt and other critical minerals, the country aims to tap into the booming demand from the United States and China for clean‑energy supply chains. Early diplomatic overtures suggest potential partnerships that could bring technical expertise and financing, while also aligning Botswana with geopolitical priorities that favor diversified, resilient mining sectors.
The diversification drive promises to stabilize Botswana’s macroeconomic outlook, reducing exposure to diamond price volatility and creating new revenue streams. For investors, the emerging data infrastructure and government backing signal a lower risk profile for exploratory projects. Regionally, Botswana’s pivot may catalyze similar initiatives in Namibia, Lesotho and South Africa, accelerating a continental transition toward a broader base of strategic minerals essential for electric vehicles, renewable energy and high‑tech manufacturing.
Diamond slump pushes Botswana to broaden mining base
Countries built on diamonds are moving to diversify their mining sectors as one of the deepest slumps in years exposes the risks of relying on the precious stones alone.
Botswana, the world’s top diamond producer by value, plans to expand exploration for minerals such as copper and other critical resources to reduce its exposure to a prolonged downturn in the diamond trade.
Speaking on the sidelines of the Indaba mining conference in South Africa, mines minister Bogolo Joy Kenewendo said the country has explored only about 30% of its territory, reflecting decades of near-exclusive focus on diamonds. She said roughly 70% of Botswana remains unexplored.
“We were doing more exploration looking for diamonds than looking for other high-value minerals, and now we’re going to change that,” Kenewendo said, as reported by Reuters.
Diamonds will remain the backbone of the country’s mining sector, but the government is pressing ahead with plans to widen the mineral base. A newly launched state-owned exploration company will focus on improving geological data and raising exploration levels to reduce risks for investors.
“There’s a little hesitation from investors to go into exploration. You can lose a lot of money by exploring and not hitting anything,” Kenewendo said. “We want to ensure that we have the right data and we know what’s where.”
Pressure spreads
The push reflects the severity of the current diamond slump. Prices have fallen as demand in key consumer markets stays soft, inventories remain high and lab-grown diamonds gain market share, particularly in the US, where lower prices appeal to younger buyers.
In Botswana, diamonds typically generate about one-third of national revenue and roughly 75% of foreign exchange earnings, leaving public finances and growth exposed when the market weakens.
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Other diamond-dependent economies face similar pressures. Namibia is promoting exploration for base metals and energy transition minerals, while Lesotho has highlighted the need to build a broader mineral and manufacturing base as diamond revenues swing. South Africa, once the centre of the global diamond industry, is increasingly focused on critical minerals such as manganese, platinum group metals and rare earths to support electric vehicles and renewable energy.
In Botswana, diversification plans also reflect shifting geopolitics around minerals. Demand for copper and cobalt has intensified as the US and China compete to secure supply chains for clean energy and high-tech industries.
Kenewendo said that Washington has expressed interest in partnering with Botswana on exploration and mining projects, though talks remain at an early stage.
(With files from Reuters)
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