05 Apr 2022

The diamond trade, which has catapulted Botswana from poverty-stricken state at independence to its current middle income status, remains vital to national development even as government works to diversify the economy.

These sentiments were expressed by President Dr Mokgweetsi Masisi at the Lucara Botswana 10th anniversary gala dinner held in Gaborone on April 4.

Lauding the company for its stellar contribution and introduction of  innovative methods of gemstone mining over the past decade, President Masisi underscored the continued importance of the diamonds to the national economy.

 “Undeniably, mining especially the diamond sector has been the largest contributor to the country’s gross domestic product (GDP).

Through our diamonds we have managed to develop our country from a low income country to upper middle income status, whilst also boosting the economy of local communities in proximity to the mining areas,” Dr Masisi said.

While the country had identified the need to diversify from heavy reliance on the commodity, President Masisi said the diamond trade would persevere.

“In our bid to achieve sustainable economic development, we are confident that Botswana will be a knowledge-based economy, characterised by efficiency-based growth. We envision a country where our service sector will be developed to be internationally competitive and exportable to other countries. 

However mining will continue to play a vital part in the trajectory of our economy,” President Masisi said.

He stated that the future of mining in Botswana would focus on beneficiation initiatives derived from the extractive industries. 

The President said through the requisite legislation and policy framework, government had provided a conducive  environment for the mining sector to thrive.

"I am happy that my government is determined to improve its facilitation of businesses operating in Botswana. 

This is evidenced by the review of our mining legislation with the aim of removing barriers that may be hindering businesses to thrive,” said President Masisi.

He noted that Parliament passed the Diamond Cutting Act Amendment Bill in August 2021 and further revealed the intention to review the Mines and Minerals Act during Parliament’s winter session.

The President praised Lucara Botswana for unearthing large gems, taking deliberate steps to inform the public about diamonds and for its corporate social responsibility initiatives.

Dr Masisi recalled joining Lucara Botswana in naming Sewelo, one of the large gems unearthed at its Karowe Mine.

He encouraged the company to consider setting up a diamond mining museum.

Lucara Botswana managing director, Ms Naseem Lahri said many milestones, including introduction of technology that enabled extraction of several large stones, had been achieved over the 10 years.

On employment issues, she said the company moved from 86 employees in 2012 to 2 380 in 2022, with 90 per cent of them being Batswana and 30 per cent women.

Through its partnership with HP Antwep, Lucara Botswana also revolutionised diamond sales structure in Botswana, Ms Lahri said.

On corporate social responsibility initiatives, Ms Lahri mentioned establishment of integrated farms in villages such as Mokubilo and Khwee, provision of clean water to Letlhakane village in partnership with Debswana and sanitary pads donations.

Founded in 2009, Lucara is a Canadian diamond exploration and mining company, whose subsidiary, Lucara Botswana started operating in 2012 and quickly got global attention with the discovery of large diamonds starting with Lesedi La Rona in 2015. ends