The decline in Botswana's diamond industry is pushing it to expand its ties with the Gulf and Europe.

Botswana is seeking to diversify its mining sector, as a prolonged slump in diamond prices exposes the limits of its economic model, prompting the country to expand its relationship with the Gulf Arab states and Europe.

In this regard, President Douma Poko, during a visit to the Sultanate of Oman this week, announced a joint exploration agreement between the Botswana Institute of Geosciences and the Oman Minerals Development Company.

This agreement follows a separate visit to France a few days ago, where investment in the mining sector was also a key focus, highlighting a broader strategy to attract new partners.

Natural gemstone prices are declining

Diamonds account for approximately 701 TP3T of Botswana's exports, a third of government revenue, and a quarter of its GDP. However, the sector has been under pressure for over three years, burdened by declining natural gemstone prices and increasing competition from synthetic diamonds.

Debswana, the country's main producer and a joint venture between the state and De Beers, cut its production by 40% between 2023 and 2025. The impact was substantial, contributing to a rare double-dip recession, with the economy shrinking by 2.8% in 2024 and 0.4% in 2025.

In response, the Botswana government is trying to accelerate diversification efforts that have been discussed for a long time but have only been partially implemented.

Untapped potential attracts foreign interest

Since taking office in October 2024, Botswana's President Douma Poko has intensified his efforts to engage with international investors. In Paris, he urged French companies to explore opportunities in Botswana's mining sector.

Orano has already obtained licenses to explore for uranium, at a time when France is seeking to diversify its supply sources following developments in Niger.

In the Gulf region, the agreement with Oman follows previous commitments from Qatar. In August 2025, Al Mansour Holding, led by Sheikh Mansour bin Jaber bin Jassim Al Thani, signed a $12 billion investment agreement covering multiple sectors, including mining.

These partnerships are based on vast untapped resources, with Botswana estimated to have around 800,000 tons of uranium reserves, and projects such as Botswana’s Littlehakan project, developed by Australian company Lotus Resources, could produce up to 3 million pounds of uranium annually over a decade.

The Botswana government says that approximately 701 TP3T of the country's land remains unexplored, offering significant potential for future discoveries. Copper, gold, graphite, and iron ore are among the priority targets in current exploration plans.

Although diamonds still dominate the market, economic diversification is gradually taking shape in the country. For example, Botswana has established a copper production capacity of over 100,000 tons per year through two operating mines: Motheo, operated by an Australian company, and Khoimacao, operated by a Chinese company.