Botswana has implemented a new regulation requiring mining firms with new concessions to offer a 24 percent ownership stake to local investors if the government chooses not to take up its own equity share. The measure, which took effect on October 1, 2025, is part of amendments to the country’s Mines and Minerals Act, aimed at strengthening local participation in the extractive sector, as reported by Mining.com.
Previously, the government retained the right to acquire up to 15 percent equity in any mining project upon license issuance, with higher stakes negotiated in diamond ventures. Under the new rule, companies must now transfer a 24 percent shareholding to Batswana citizens or locally owned entities if the government declines its option. The Ministry of Minerals and Energy said the change is designed to promote domestic capital formation and ensure that the nation’s mineral wealth benefits its people, as highlighted by Business & Human Rights Resource Centre.
Minister of Minerals and Energy Lefoko Moagi said the new ownership rule will “help build local value chains, expand downstream processing, and support sustainable national development.” He added that Botswana’s pension funds could assist citizens and local investors in acquiring their mandated stakes.
Analysts note that the reform reflects a broader wave of resource nationalism across Africa, as countries seek greater control over natural resources. However, experts caution that clarity on implementation, particularly around valuation, financing, and governance, will be essential to maintaining investor confidence while ensuring meaningful local participation, Mining.com reported.
