Botswana did not nationalise its mines. It formed a 50:50 joint venture with De Beers (Debswana) and shares the profit through tax, dividends and royalties. But the diamond slump since 2024 has shrunk the economy two years running, showing the risk of depending on one commodity.
Key facts
| Chapter | What Botswana does |
|---|---|
| 3. Joint venture | Debswana runs the Jwaneng, Orapa, Letlhakane and Damtshaa mines; government and De Beers own 50% each (Jewellery News) |
| 4. Renegotiation | Under the deal concluded in February 2025, state-owned Okavango Diamond Company's share of output starts at 30% and reaches 50% within 10 years (previously 25%); licences extended to 2054 (IDEX, Jewellery News) |
| 8. Diversification fund | De Beers puts US$75m into a Diamonds for Development Fund, potentially US$750m over 10 years (Jewellery News) |
| 6. Fiscal rule | Sustainable Budget Index (since 1994): recurrent spending outside health and education must be covered by non-mineral revenue, so mineral revenue goes to investment (CCSI, Daily News) |
| 6. Savings | NDP 11 proposed saving 40% of mineral revenue for future generations and investing 60% in development (WAVES) |
| Slump (2024–2026) | Economy shrank 3% in 2024 (IMF); 2025–26 mineral revenue of BWP 10.3 billion, under half the historic average (Your Botswana); debt projected to breach the 40% legal ceiling (BusinessDay) |
What Mongolia can copy
- Instead of the state running mines, form equal joint ventures with experienced partners who supply professional management.
- Negotiate marketing rights, not just equity: the right for Mongolia to sell a set share of copper and coal concentrate itself.
- When extending agreements, require fixed contributions to a diversification fund.
- An SBI-style rule that recurrent spending is covered by non-mining revenue.
What doesn't transfer directly
- Botswana built 50 years of stable partnership with one investor; Mongolia's relations with foreign investors have been less stable, so contract trust must be rebuilt first.
- Botswana's biggest lesson is a warning: dependence on diamonds and lapses in its own rules let the budget deteriorate fast.
This profile is part of the report Sharing Resource Wealth and focuses on chapters 6 and 7 of the 12-chapter template. Research on the other chapters is in progress.