Africa, abundant in mineral resources, holds undeniable potential. However, conflicts and controversies often hinder the sector’s development. Despite this, some African nations excel in mining management and attract significant interest. Botswana, for instance, ranks among the world’s top five mining jurisdictions and leads the continent in this sector.
Leader in Africa and 4th in global rankings
The Fraser Institute, a renowned Canadian think tank, publishes an annual ranking of the best mining jurisdictions for investment. This ranking is based on a detailed analysis of various criteria, including mineral potential and mining policies such as taxation levels.
According to the organization, 40 % of investment decisions are influenced by political factors, while 60 % depend on the assessment of mineral potential. The 2023 edition evaluates 22 African countries and ranks Botswana fourth worldwide for mining investment attractiveness. This southern African country thus maintains its leading position on the African continent.
High-potential mining sector
According to the Canadian think tank, Botswana ranks 22nd out of 58 jurisdictions on the mineral potential index. A major player in the global mining sector, Botswana boasts abundant mineral resources and a diversified portfolio. Its mines exploit deposits of diamonds, copper, nickel, coal, and silver, contributing significantly to the local economy by accounting for 20-25 % of the gross domestic product (GDP).
Botswana, the world’s second-largest diamond producer after Russia, is renowned for the excellence of its gems. However, the economy is heavily dependent on the diamond industry, which accounts for 80-90 % of export revenues. This dependence exposes the country to external shocks, such as pandemics or price volatility. Additionally, diamond reserves are limited, with an estimated lifespan of 20 to 30 years.
Investment-friendly mining policy
Botswana ranks 4th worldwide on the Mining Policy Perception Index. Its political stability and high-quality governance position it as a leader among sub-Saharan African countries in terms of business environment. The country’s mining strategies, which feature clear regulations and a favorable legal framework, create a supportive climate for investment and sector growth.
The Botswana government is dedicated to advancing the mining sector with a strategic vision and continuous efforts to attract investors. Additionally, it aims to enhance standards to guide the sector toward sustainable and responsible growth, while also working to diversify its mining portfolio by promoting other mineral resources.
Mining attractiveness : Ranking of African countries
Despite its vast mining potential, Africa remains one of the least attractive regions for investors. The Fraser Institute’s 2023 ranking places Africa as the third least appealing region for mining investment, primarily due regulatory uncertainty, protected areas, and labor regulations.
Morocco retains its position as the second most attractive mining jurisdiction on the continent, as it did in 2022. Côte d’Ivoire remains West Africa’s top choice for mining investment, despite a two-rank drop. Conversely, Niger falls significantly, ranking 86th globally and within Africa. Mozambique, Zimbabwe, and Senegal follow closely, with global rankings of 82nd, 81st, and 80th, respectively. Mali and Burkina Faso are ranked 65th and 66th, respectively.
The Fraser Institute’s recent ranking underscores two key points: it highlights the opportunities Botswana offers to international investors and reaffirms the nation’s status as a model of good governance and effective natural resource management in Africa. In 2023, Botswana stands out as the continent’s most attractive mining jurisdiction, enhancing its reputation and drawing more foreign investment to its mining sector, which in turn fosters economic growth and job creation.
