BOTSWANA’S new president, Duma Boko, has laid out an ambitious roadmap to steer the nation away from its heavy reliance on diamonds. In his first State of the Nation Address on Tuesday, Boko announced plans to diversify the economy by developing industries such as medical cannabis (igbo), renewable energy, and technology.
‘The decline in diamond revenues by over 60 percent in recent years is a clear signal that we can no longer afford to depend on a single commodity,’ Boko told the nation. His strategy comes as Botswana grapples with a sharp drop in diamond prices due to the rise of synthetic alternatives.
Diamond industry in decline
Diamonds have long been the backbone of Botswana’s economy, accounting for 80 percent of exports, a quarter of GDP, and a third of tax revenues, according to the IMF. However, with prices falling 30 percent since 2022, largely due to the growing popularity of lab-grown diamonds, the need for economic diversification has become urgent.
‘Laboratory diamonds have broken market prices and continue to get cheaper,’ explained historian Duncan Money, an expert in mining industries.
Cannabis and solar energy at the forefront
One of the key pillars of Boko’s strategy is the development of a medical cannabis and hemp industry. He highlighted its potential to significantly boost GDP while creating thousands of jobs.
‘Our forecast in Botswana is to significantly increase our GDP with cannabis and hemp-related products. We will create jobs in this industry,’ Boko said.
Another major focus is harnessing Botswana’s abundant solar energy potential. ‘With more than 3,200 hours of sunlight annually and an average of 21 megajoules per square metre, we are among the world’s leaders in solar energy potential,’ Boko added.
Broader economic reforms
Boko’s diversification plans extend beyond cannabis and solar energy. The government aims to bolster agriculture, tourism, and technology to create a robust and sustainable economy. He also announced initiatives to stimulate manufacturing, construction, and entrepreneurship to combat high unemployment rates.
In a move to modernise Botswana’s digital infrastructure, the president confirmed a partnership with Elon Musk’s satellite internet provider, Starlink. The investment will help establish Botswana as a digital hub for Southern Africa, enhancing connectivity and creating opportunities in the tech sector.
A new era for Botswana
Boko’s address signalled a bold shift for Botswana as it seeks to shed its diamond dependency and build a more diversified and resilient economy. His vision reflects a blend of innovation and pragmatism, aiming to position the nation as a leader in renewable energy, cannabis production, and technological advancement.
