Botswana Must End Reliance on Diamond Revenue, says President

February 07, 2021 / www.idexonline.com / Article Link

(IDEX Online) - Botswana must end its dependence on diamonds and diversify into gold, metals, coal and other commodities, says it president, Mokgweetsi Masisi. After a year in which rough exports were badly hit by Covid travel bans and depressed demand, he said it was "more imperative than ever" that the nation exploit its other natural reserves.Exports by Debswana, which controls most of Botswana's diamond production, fell 30 per cent in 2020 from $3.05bn in 2019 to $2.02bn and last week the country increased VAT from 12 per cent to 14 per cent. In addition, De Beers, which holds its sights in Botswana, has revised its 2021 production forecast down slightly. Last week Mr Masisi (pictured) told the Investing in African Mining Indaba virtual conference that Botswana was developing the means to export coal from its estimated 200-billion ton reserves to neighboring countries.Botswana, the world's second biggest rough supplier after Russia, has invested diamond revenue into infrastructure and education but still suffers from an underdeveloped agricultural sector, poor water supply and food shortages.

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