Botswana

Botswana is the world’s largest producer of diamonds by value and host to the world’s richest diamond mine, Jwaneng. It is also one of Africa's most stable countries and the continent’s longest continuous multi-party democracy. The country is sparsely populated due to the Kalahari desert which makes up much of the territory.

A geological event known as Kalahari sand cover is in place over much of Botswana, increasing in depth from east to west, meaning that, exploration techniques rely largely on geophysics. Karoo age flood basalts also cover most of Botswana, underlying the Kalahari sand. As a result, the basement geology of most of Botswana is poorly exposed and understood, and information is based on drilling. The presence of the large kimberlite mines in central and south central Botswana lead geologists to believe that the Zimbabwe craton underlies Botswana to a major extent.

The diamond industry has transformed Botswana into a middle-income nation and one of the most dynamic economies in Africa. Diamond mining has fuelled much of its economic expansion and currently accounts for more than one-third of GDP and 70-80% of export earnings. Other exports include copper, nickel, soda ash, meat and textiles. Botswana produced 32.2 million carats in 2008, worth US$3.3 billion.

Mining and fiscal regime

Company Tax / Corporate Tax Mining

25% (but 15% wh/tax if IFSC registered)

Second Tier Taxes

10.0%

Mining Royalty Tax

10% for precious stones (mineral sale value at `mine gate')

Industrial Tax (on total sales revenue)

None

Commercialisation Tax (Sales Tax)
(on total sales revenue)

None
 

Discount to Government
(on total sales revenue)

None
 

Rough Diamond Export Levy

None

Exploration diamond export royalty

None

C&P diamonds valuation fee on rough

None