Botswana has begun enforcing a new mining law requiring companies to sell a 24% stake in new concessions to local investors if the government chooses not to exercise its purchase option, the Motswana Ministry of Minerals and Energy said last week.

The rule replaces the previous 15% state ownership provision in the Mines and Minerals Act. It forms part of broader reforms aimed at boosting local participation in the country’s mining sector.

As the world’s top diamond producer, Botswana is seeking to keep more of its mineral wealth at home. Weighed down by weak diamond demand and the rise of synthetic stones, Botswana has struggled to fund its budget. Revenues from diamond sales plunged 50% in 2024, deepening fiscal pressures. The International Monetary Fund now expects the economy to contract for a second consecutive year, forecasting a 0.4% decline in gross domestic product in 2025 after a three percent drop last year.