New players enter the Diamond value chain

The local diamond industry growth has heightened, as government has extended support to create a conducive environment to explore value chain opportunities in the various sectors of the economy. President Masisi this week announced that the country has 50 licensed diamond cutting and polishing companies with 48 in operation. “About 50 percent of the companies were licensed during the 2021-2022 period and they are at different stages of operations,” said Masisi at the factory launch of new entrant into diamond polishing and cutting HB Botswana. He further highlighted that the increase in licensed companies has also created employment opportunities amid the upward spiraling unemployment rate. “With the increase in licensed companies, we have seen it translating to an increase in employment with 4001 employees registered as at 15th January 2023, compared to 2332 employees registered during the same period in 2022,” said Masisi. The Finance Minister, Peggy Serame, presenting the 2023/2024 budget proposal, cited that a development budget of P540.89 million is being proposed for value chain development. The development comes at the backdrop of a new Minerals Policy adopted in February 2022, to enhance the domestic economic benefit from minerals development through beneficiation and local value addition activities. “Government is in the process of reviewing the key mining legislation, the Mines and Minerals Act, which deals with granting of licenses for mineral prospecting and exploration as well as for mining operations. “The proposed amendments will include provisions for local beneficiation of minerals and meeting local needs for mining products,” said Serame, adding that several mining, cutting and polishing companies are currently considering beneficiation and value addition in their development plans, leveraging on advanced technology and emerging market opportunities. Another area targeted by the initiative is to develop the sunflower oil value chain, Special Economic Zones Authority, in partnership with the Ministry of Agriculture through identifying gaps in the market. Serame said government will engage with local farmers to ensure adequate supplies of raw materials and investment in production facilities. “These developments will enable Botswana to reduce imports of cooking oil and create indirect business and employment opportunities for Batswana,” Serame said.

This month government has lifted measures meant to cushion the impact of the higher cost-of-living on households, of a six months zero-rating of liquefied petroleum gas and cooking oil will not continue into the new fiscal year.

She also highlighted that value chain opportunities also exist in the dairy sector, including alternative breeding systems to improve and grow the dairy herd.

Meanwhile, she is also optimistic that the African Continental Free Trade Area (AfCFTA), the Southern African Development Community (SADC and the Southern African Customs Union (SACU) free trade agreements have the potential to develop and grow the Botswana economy into an export-led and structurally transformed one, through exploitation of value-chains in the region and the Continent.