Transcript Botswana at a Glance

Hon. Keletso Rakhudu
Assistant Minister
Trade and Industry, Botswana
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Botswana at a Glance
• Covers a total area of
582,000 square kilometres,
about the same size as
Kenya and France.
• Population of about 2 million
(2011 census)
• GDP/capita P59,245
(US$7,889)
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Investment Climate
Botswana continues to receive favorable
sovereign risk ratings by both Standard &
Poor’s and Moody’s investment agencies for
the general economy, and Fraser Institute of
Canada and Resource Stocks for the mining
industry
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Credit rating stands at A
Ranked 17/93 in policy potential index and number 1 in
current mineral potential according Fraser Institute
Survey of 2011/12
Ranked as most transparent country in Africa.
Zero tolerance to corruption.
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Diamond Mining Overview
• Botswana’s modern day diamond mining started
in the early 1970’s
• Minerals contribute substantially to the country’s
economy;
– An average of 19.5% to GDP (2012 figures)
– About 31% to Government revenue (2012/13)
• Diamonds contribute 81% of the minerals
contribution to GDP
• Diamonds contribute about 98% to minerals
revenue due to Government
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Broader Minerals Policy Objectives
• Maximize the economic benefits to the nation while
enabling private investor to earn competitive
returns
• Create a competitive environment to stimulate
private sector investment in mineral prospecting
and exploitation
• Encourage linkages with the rest of the economy to
expand value addition activities
• Generate employment and training for Botswana’s
citizens
• Safeguard the environment
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Diamond Beneficiation Specific
Policy objective
• Transform Botswana from a leading
diamond producer by value to a
global diamond centre
oLicensing conditions that require new
mines to market their diamonds locally
oSales Agreement condition that
requires our partners, to conduct
diamond sales in Botswana and to
allocate a portion of production to the
local diamond manufacturing industry
oProviding conducive environment to
efficient diamond sector operation
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Where is Botswana - Diamond value chain
some
participation
Strong participation
Exploration
Mining
Sorting
Rough
trading
some
participation
Cutting
polishing
Just started some participation)
Polished
trading
Jewellery
Manuf.
Retail
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Where is Botswana - Diamond value
chain
• 25 Companies licensed in diamond
cutting and polishing since 2004
• 21 cutting and polishing factories with
DTC guaranteed rough diamond
supply and 4 with different sources of
supply
• 3302 people employed in cutting and
polishing industry in 2012
• Goods polished locally grown from
$28 million in 2005 to just above
$600 million in 2011
• One of the companies cutting and
polishing diamonds in Botswana
opened a jewellery factory in 2011
DTC Botswana
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Where is Botswana - Diamond value chain
• A secure diamond transfer facility
constructed at SSKA to improve
security of transporting diamonds in
and out of the country
• Government established a private
company, wholly owed by Government ,
Okavango Diamond Company (ODC)to
market 10-15% of Debswana
production independently from De
Beers
• ODC is following an aggressive project
implementation plan, the company was
launced in September 2013 and has
todate made 5 sales (2 in 2014).
• ODC’s selling model captures broad
range of customers across the globe
including the DTC sightholders.
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Opportunities in coal
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Opportunities in coal
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Trans Kalahari Rail & Port
• Ponta Techobanine Project
Development and operation of a heavy ➢ Development and operation of a
haul rail from the eastern part of
heavy haul rail from the eastern part
Botswana traversing the Kalahari and
of Botswana traversing Zimbabwe
Namib Deserts to the Atlantic ocean
through to deep sea port of
seaport of Walvis Bay
Techobanine in Mozambique
The Rail shall cover a distance of
approximately 1500km terminating at
a 4 x 4 km coal terminal situated about ➢ The Rail shall cover a distance of
10 km in-land
approximately 1400km terminating
The terminal will be linked through a
at a coal terminal on the Indian
conveyor
belt
loading
berths
Ocean coast in Mozambique
approximately 1km off-shore.
The two Countries to sign a
bilateral agreement before the
end of March 2014 to pave way
for the implementation of the
project
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Thank you
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