Mineral exploration, oil storage, and renewable energy: Significant agreements concluded between Botswana and Oman

On Monday, several agreements were signed between the Sultanate of Oman and Botswana, including mineral exploration, the establishment of oil storage infrastructure, and cooperation in the field of renewable energy.

This came during a visit by Botswanan President Douma Poko to Oman, aimed at strengthening economic relations, according to a statement from the presidency.

mineral exploration

Botswana is seeking to establish relations with the Gulf states as part of its strategy to diversify its economy away from diamond mining and towards vital minerals such as copper, gold, graphite and iron ore.

The statement said that Boko, who is currently visiting Oman for a three-day visit, presided over the signing ceremony of the agreements with Sultan Haitham bin Tariq, the Sultan of Oman.

One of these agreements is a joint agreement for mineral exploration, under which Botswana seeks to increase mining exploration, targeting unexplored areas that cover approximately 70% of its territory.

Botswana's national revenues

Diamond sales revenues, which typically account for about a third of Botswana's national income, have declined as the global diamond market has weakened due to economic uncertainty and the rising popularity of lab-grown stones.

Another agreement included the development of a 500-megawatt solar power plant, following an announcement on March 20 that Naqa Sustainable Energy, a subsidiary of Oman’s state-owned O-Green, had been selected to design, finance, build and operate the plant in northwest Botswana.

The station is scheduled to operate for at least 25 years.

Botswana aims to increase the contribution of renewable energy to its energy supply from the current 8% to 50% by 2030.

Renewable energy station

The statement said the station would put Botswana “in a position to secure its energy future and open the door to long-term economic value.”.

In the same context, the state-owned Botswana Oil Limited signed a joint development agreement with OQ to build oil storage infrastructure in Walvis Bay in Namibia and in Botswana.

While Oman seeks to diversify its oil-dependent economy, despite increased revenues resulting from higher oil prices linked to the US-Iran war.