Botswana faces rising unemployment as Genesis HB Botswana warns of mass diamond-sector layoffs and coal mine retrenchments leaving skilled graduates and mine workers in limbo
GAZETTE REPORTER
Botswana’s unemployment crisis is worsening as fresh retrenchments in the diamond and coal sectors expose deepening cracks in the country’s most critical industries, leaving skilled graduates and mine workers facing an uncertain future.
Diamond manufacturer Genesis HB Botswana has confirmed plans to cut jobs, warning that failure to secure a diamond supply agreement could trigger mass layoffs affecting up to 80 percent of its workforce.
“In line with Section 25 of the Employment Act, this letter serves as formal notification that Genesis HB Botswana intends to rationalize its operations due to commercial and operational constraints that threaten the long-term sustainability of the business,” said managing partner Boaz Lev in a notice to the Commissioner of Labour.
The company invested over $10 million (about P140 million) in a state-of-the-art facility in Gaborone and recruited dozens of local graduates, many of whom were sent abroad for specialized training. Reports indicate that in 2023, the Botswana Government had planned to buy a stake in the company worth more than P800 million, but the deal appears to have collapsed before it could take off.
GOVERNMENT SUPPLY DELAYS STRAIN OPERATIONS
Lev said the government’s commitment has yet to materialize. “Genesis HB has repeatedly engaged senior leadership in Government, stressing the urgent need for ODC supply to allow us to operate at scale. Over recent months, we have continuously requested meetings with the Minister of Minerals, as well as with the Vice President and Minister of Finance, hoping to secure clarity on the supply agreement. Despite ongoing efforts, we have not been able to obtain a meeting.”
He added: “Discussions that did occur were constructive and positive, but they did not result in a supply agreement. Without ODC supply, the Botswana facility cannot generate revenue and has been operating far below capacity. This makes the current structure unsustainable.”
Employee Anxiety Grows
The looming cuts have created anxiety and uncertainty among staff. “We are not only in a state of shock, but also uninformed about the correct procedures and how the company reached this position,” employees said during consultations documented in meeting minutes.
Coal Sector Retrenchments Add to Pressure
The crisis extends beyond diamonds. At the Masama coal mine, the Botswana Mine Workers Union (BMWU) has accused contractor Meropa Resources of abandoning workers without pay and failing to follow legal retrenchment procedures.
“Meropa failed to comply with entrenched procedural principles… including consultations with the union and payment of terminal benefits,” said union general secretary Mbiganyi Gaekgotswe.
The union warned that allowing companies with unresolved labour violations to secure new contracts threatens workers across the mining sector.
Ripple Effects Across the Economy
Information reaching the Gazette indicates that the layoffs could have ripple effects across the economy, particularly given mining’s role in supporting downstream industries and skilled employment.
Genesis HB Botswana alone had projected employing more than 500 people but now faces a growing number of unemployed graduates and mine workers.
PULL QUOTE: “Without ODC supply, the Botswana facility cannot generate revenue and has been operating far below capacity. This makes the current structure unsustainable”