Africa's resource strategy shifts from raw exports to value addition, facing diamond market downturn and embracing critical minerals
via NewsDay Zimbabwe1 hour ago15 min read
Botswana's economy contracted by 1% in 2025, prompting intensified efforts to diversify its mining sector beyond diamonds and target 3.1% GDP growth in 2026. The country, heavily reliant on diamond exports, faces challenges due to declining diamond sales and a structural downturn in the global diamond industry. The government, under President Duma Boko, is working to increase its stake in De Beers to over 50% to gain greater control over the diamond value chain, with potential financing from partners like the Oman sovereign wealth fund. However, the economic viability of such a deal is questioned due to significant write-downs by Anglo American, De Beers' majority owner. Across Africa, there is a growing trend towards resource nationalism and strategic industrial policy. Zimbabwe, for example, has banned the export of raw lithium concentrates to encourage local value addition and ensure full declaration of mineral compositions. This policy directly impacts Chinese battery manufacturers who rely on Zimbabwean lithium. Similarly, Botswana is exploring other critical minerals like copper and cobalt, and investing in renewable energy, technology, and agriculture, targeting 70% of unexplored territory for new mineral development. Economists emphasize the importance for African countries to strategically manage their resources, avoid desperation for investment that leads to loss of control, and ensure mineral wealth contributes meaningfully to their economies. They highlight the ne
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Original source
This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
