Govt reshapes economic strategy

Botswana government has secured a landmark deal with De Beers, granting the country an increased share in its diamond sales over the next 15 years. President Duma Boko, announcing the agreement at a press briefing, detailed a phased structure that progressively expands the state’s control over its diamond resources. “For the first five years, Okavango Diamond Company (ODC) will manage 30% of Botswana’s diamond sales, while De Beers will retain 70%. This shifts to a 40-60 split in the next phase, and in the final five years, the two will have equal shares at 50% each,” Boko explained.The agreement marks a significant milestone in Botswana’s long-standing partnership with De Beers, ensuring the country benefits more directly from its natural wealth while maintaining stability in the diamond industry. This shift aligns with broader economic reforms championed by Boko’s administration, which prioritise increased local ownership and industry diversification. 

Amid questions over taxation, the Minister of Minerals and Energy Bogolo Kenewendo assured the public that De Beers has no outstanding liabilities in Botswana. “As a private company doing business in Botswana, I can say I am not at liberty to disclose their standing but I can say that they do not have any liabilities in Botswana,” she stated. 

The issue of taxation has long been a topic of discussion in Botswana’s dealings with De Beers and while the new agreement increases the country’s share of diamond revenues, public scrutiny remains high over whether the company contributes its fair share to national coffers. 

Chema Chema now a grant 

Alongside the diamond deal, the government has announced a major restructuring of its support for Small, Medium, and Micro Enterprises (SMMEs). The Chema-Chema loan scheme, which had allocated P200 million to small businesses but saw only a 2% repayment rate, has been discontinued in favour of a grant-based system. “We all agree on the need to support SMMEs, but our approach is shaped by our belief that every business owner deserves the chance to grow into something bigger,” Boko stated. “A hawker should be able to scale up. A combi owner should eventually own a transport company—maybe even an airline.” In place of loans, the government is investing in skills development, technology access, and cooperative structures that will help small businesses scale sustainably. Those who had repaid their Chema- Chema loans will be reimbursed, signaling a fresh start for Botswana’s entrepreneurs under a more supportive, debt-free model. 

Hemp and Cannabis 

As Botswana seeks to expand beyond diamonds, the government has reaffirmed its commitment to industrial hemp and cannabis farming as a key pillar of economic diversification. Boko highlighted the potential of the sector not just for medicinal purposes, but for innovative by-products such as fireproof and insect-resistant hemp bricks. “We have ample land for cultivation, and plans for industrial production are already underway,” Boko stated. 

“However, this is a delicate crop that requires strict handling procedures, so we are ensuring that the right legal frameworks are in place.” 

To regulate the sector, licenses for farming and possession will be managed by a coalition of government bodies, including the Ministry of Lands and Agriculture, the Ministry of Trade and Entrepreneurship, the Drug Enforcement Agency (DEA), and the Botswana Medicines Regulatory Authority (BOMRA). 

Acknowledging concerns that high licensing fees might disadvantage ordinary Batswana, Boko encouraged landowners to form partnerships with investors who have the necessary capital and expertise. 

His administration remains committed to positioning Botswana as a global player in the hemp and cannabis market, creating opportunities for local farmers and businesses in the process. With these sweeping reforms, Botswana is redefining its economic trajectory, balancing long-standing industries with new opportunities to ensure sustainable growth and self-sufficiency for its people 

President Duma Boko 

How do you rate this period’s performance when compared with the previous corresponding period? 

VIDYA: The overall performance was excellent compared to corresponding period. The group has reported a growth of 5% Profit before tax , this growth achieved through the rental escalation as well as the revenue generated from the new development during the reporting period. 

How is the performance aligning with the company’s long term strategic goals? 

VIDYA: The long-term strategic goal to achieve reasonable return on investment and growth in portfolio this will be achieved by developing existing land bank which promise better rent yield and reasonable project growth in the Portfolio. 

The company says three new high yield properties will add to the revenue before the year end – where are these properties and why do you expect them to perform well? 

VIDYA: These properties are located in Botswana at Serowe, Mopipi and one in Lusaka Zambia. The properties are being developed with a pre-lease arrangement that gives us a better yield. Our construction management aid us to develop properties with economies of scale that guarantee better yield on properties the company is developing compared to the yield of acquisitions. 

Into the long term do you still expect Botswana to remain the leading contributor to your bottom line? 

VIDYA: Yes, the Botswana market is still growing with lot of opportunities. Approximately 87 % of our total revenue is generated from Botswana Portfolio. 

What is the status of your land bank? 

VIDYA: Approximately 5% our total portfolio consists of good quality land bank, and we continue to add more land bank in the portfolio, as well as developing strategic location from time to time. 

Would you say the property sector shall remain lucrative into the future – is there no saturation of particular segments and how do your countries of operation fair in this regard? 

VIDYA: There is growing demand in industrial and commercial sector in Botswana. Our portfolio is designed in such a way that it automatically mitigates the risk of tenancy. Our tenant mix and usage are well designed to avoid any kind of market risk. Our portfolio operations are expanding in Zambia and stepping up in Namibia in the near future. . For further enquiries, contact Marketing and Communications at +267 393 0741 or email marketingcomms@hrdc.org.bw . THEME: Leveraging on TVET to transform higher education in Botswana: diversifying the economy through youth skills development Gaborone: 25th – 28th March 2025 Fairground Holdings HRDC invites all prospective students to participate in the upcoming fair. FREE ENTRY