Botswana courts Russia investors as it negotiates with US

Botswana’s Government has announced plans to open an embassy in Moscow and is inviting Russian investors to explore opportunities in the country’s mining sector, including diamonds and rare earths, reports Business Insider Africa. On Sunday, Foreign Minister Phenyo Butale told TASS, Russia’s state news agency: ‘We firmly believe that Botswana is the best place for investment, considering its political and economic stability. Therefore, we strongly encourage Russian investors to come to Botswana.’ Meanwhile, Botswana has been seeking preferential access to its largest market, the US, as its diamond sector faces mounting challenges. Diamonds mined, cut and polished within Botswana currently face a 15% import tariff, while rough stones attract a 37% duty. Those mined inside the country but cut and polished in third countries, such as India, may encounter tariffs of up to 50%. The government has been negotiating with the US to reduce these barriers, aiming to protect revenues and sustain one of its key export markets. In September last year, Vice-President Ndaba Gaolathe and Trade Minister Tiroeaone Ntsima met with US Commerce Secretary Howard Lutnick. They proposed giving US companies priority access to Botswana’s critical minerals and rare earths in exchange for reducing tariffs on Botswana’s diamond exports. But even as US talks progress, Botswana is actively courting Russian investors to sustain its economy. The diamond sector, which contributes roughly one-third of national revenue and nearly 75% of foreign exchange earnings, has faced challenges.

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