Botswana's newly elected president, Duma Boko, has announced that all diamonds mined in the country will be cut and polished locally. Speaking to a public assembly in Ramotswa, he declared that no diamond would leave Botswana in its raw form. This marks a significant shift in national policy, aimed at ensuring that the country gains more value from its mineral resources before they are exported.

This initiative is part of a broader strategy to process all of Botswana's minerals - including copper and nickel - within the country. The government is preparing to introduce legislation that will require local processing of all mineral exports. According to President Boko, once the laws are in place, there will be no obstacles to achieving this goal.

At present, only about ten percent of Botswana's rough diamonds are cut and polished domestically. Diamonds are vital to the nation's economy, accounting for 80 percent of export revenues and 30 percent of the gross domestic product. However, the country's reliance on this single resource has become a liability. Last year, diamond sales through Debswana, the joint venture between the government and De Beers, fell by more than half.

The economic consequences have been severe. Botswana's economy shrank by 3.1 percent, the national budget deficit widened to nine percent of GDP - the highest level since the COVID-19 pandemic - and foreign reserves have nearly been depleted. The country has also faced a credit rating downgrade.

President Boko's plan reflects a recognition that Botswana must not only reduce its dependence on diamond exports but also capture more of the value chain by investing in local processing. His administration views this shift as essential to revitalizing the economy and creating sustainable growth.