Botswana seeks economic diversification through diamond value addition and smarter infrastructure

Botswana is facing economic challenges as diamond revenues weaken, prompting discussions on how to better manage national resources and infrastructure spending.

Minerals and Energy Minister Bogolo Joy Kenewendo has called for increased citizen participation and greater value addition within the diamond industry. Speaking in New York, she emphasized that the country must move beyond mere extraction to engage in higher-value activities such as cutting, polishing, design, and marketing. The goal is to ensure that the economic benefits of diamonds extend throughout the entire value chain rather than ending at the mine.

Simultaneously, concerns have been raised regarding the country’s reliance on mega-projects. Critics argue that large-scale infrastructure, such as the Trans-Kalahari Railway, may lead to an ‘economic delusion’ if the expenditure does not translate into sustainable jobs, increased industrial output, or genuine economic diversification. There is a warning that transit-focused projects may provide transport services for other nations' commodities without creating long-term domestic employment or productive economic growth.