Botswana Enforces New Law Requiring Mining Companies To Offer 24 Per Cent Stake To Locals

Botswana has begun enforcing a new rule that requires mining companies to sell a 24 per cent stake in new concessions to local investors if the government chooses not to take up the stake itself.

The measure was first proposed in 2024 as part of draft legislation, but authorities had not indicated when it would come into effect.

In a statement issued on 10 October 2025, the Ministry of Minerals and Energy announced that the Mines and Minerals (Amendment) Act, 2024 (Act No. 14 of 2024) officially came into force on 1 October.

Under the previous law, Botswana’s government held the right to acquire a 15 per cent shareholding in any new mining concession upon licensing, with the option to increase its stake in diamond projects.

The amended Act raises this threshold, granting the government the option to take up to 24 per cent. If the government declines, the mining company is required to sell that stake to citizens or citizen-owned companies.

The new legislation also obliges mining companies to beneficiate minerals within Botswana, as far as is practical and in line with regulations currently being developed.

In addition, companies must establish an environmental rehabilitation trust fund or provide a financial guarantee from a Botswana-registered bank or another institution approved by the Minister.

The Act also introduces stiffer penalties for illegal mining and other forms of non-compliance.

Botswana remains the world’s leading diamond producer by value and is increasingly emerging as a regional hotspot for copper mining.

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