- Entities move to reduce Botswana’s dependence on diamonds as mining revenues face growing pressure
GAZETTE REPORTER
Debswana Diamond Company and Botswana Development Corporation have signed a Memorandum of Understanding aimed at accelerating economic diversification and reducing Botswana’s dependence on diamond revenues.
The agreement will focus on building a pipeline of future investments, funding businesses, developing new industries and expanding existing sectors outside diamonds, as both institutions seek to support a broader economic base.
Speaking at the signing, Debswana’s chief financial officer, Ian Modubule, said the deal comes at a difficult period for the diamond mining industry.
“The diamond mining industry is facing significant challenges,” Modubule said, adding that Debswana’s long-standing reliance on diamonds had narrowed its commercial focus and exposed both the company and Botswana to downturns in the global diamond market.
Beyond Diamonds
Modubule said Debswana had adopted a strategy that looks beyond mining and places greater emphasis on partnerships to secure long-term growth.
“We can no longer depend on diamonds alone,” he said.
He said the company needed experienced partners to guide its entry into new investment areas and described BDC as a natural fit because of its long history in investment and enterprise development.
Modubule said the agreement was more than a formal signing, calling it a serious partnership aimed at reshaping Debswana into a profitable business beyond diamonds.
He warned that planning for a post-diamond economy could not be delayed.
Strategy Shift
Debswana managing director Andrew Motsumi said the MoU aligned with the company’s 2025–2029 hybrid transformation strategy, which aims to build a diversified cash-generating portfolio by 2029.
Motsumi said the strategy has three pathways: strengthening its diamond mining operations, expanding into sectors linked to its existing capabilities and investing in new ventures with long-term value.
He said the partnership would target sectors including mining, agriculture, manufacturing, tourism, infrastructure, energy, water, financial services, digitalisation and social development.
National Role
BDC managing director Oteng Keabetswe said the corporation viewed the partnership as part of its long-standing mandate to grow industries beyond mining.
Keabetswe said Botswana’s economic volatility, driven largely by declining mining revenues, had made diversification increasingly urgent.
He said the partnership would focus on unlocking value from Debswana’s assets, strengthening value chains and creating sustainable jobs.