Locals must also own Mining Companies
Botswana is a major player in the mining industry, owing to its diamonds that remain the biggest revenue earner today. Given the vast and promising exploration activities around the country, it goes without saying that the country will continue - tor for years to come. What is even more interesting is that, more and more mineral deposits, away from diamonds are being discovered. Talk of manganese, iron ore, cobalt, uranium you name them.
This week, the Minister for Minerals and Energy, Lefoko Moagi gave a keynote speech at this year’s resources conference, where he talked at length about how government is revamping frameworks, policies and laws to ensure that the sector operates seamlessly. We commend this noble initiative by government. However, we are increasingly worried that government is not coming up with innovative solutions to help indigenous Batswana to become owners within the sector.
As things stand exploration and mining licenses are foreign controlled. We understand that this is a result of the fact that the sector is both technically complex and capital intensive. However, we have a strong conviction that Botswana, which has been mining for nearly 50 years, is now more than ready to have Batswana own the means of production in the mining sector. The biggest factor which is inhibiting Batswana Mining by nature is capital intensive and risky. This explains why most locals, who have wished to become owners of means of production have since sold their prospecting licenses to those from developed countries. The Government should do a lot to practically incentivise locals to get into the business as owners, the same way that government has done to lure them into sectors such as agriculture, manufacturing or property. Why can’t government come up with
which can help lower to middle min
In Botswana the mining sector is
However, it is much easier to get funding for those sectors than any mining venture. The same way that government has managed to develop agricultural banks like National Development Bank, the same can which could give them an equal opportunity when scaled against their peers from developed countries.
We commend government for encouraging mining companies to source their respective supplies from locals through citizen economic empowerment initiatives. However, locals will be economically boosted if they are to be given an opportunity to operate their own mines. That opportunity can come in the form of funding.
At most, government could even acquisition of shares from existing mines by locals. Now that is what we can call real citizen empowerment. Real empowerment does not happen when government encourages min
that is not sustainable.
If needs be, government should make a law that any mining license issued should contain a clause that compels foreign companies to have a certain percentage of their shareholding owned by locals.
This is what Moagi, a former miner should advocate for at cabinet. Without locals, owning means of production within the mining sector, Batswana will continue to be mere spectators in their own turf.