Botswana, Oman strike energy, mining deals to boost Africa ties

Botswana is stepping up efforts to reduce its reliance on diamonds, signing new agreements with Oman that span energy, mining and infrastructure.

The deals come as the Southern African country faces softer global demand for diamonds, a sector that has long supported public finances and economic growth. 

For years, diamonds have accounted for about a third of Botswana’s economy.

But falling prices and growing competition from lab-grown stones have begun to weigh on revenues, prompting officials to look for new sources of growth and investment. 

The agreements were formalized during talks between Duma Boko and Haitham bin Tariq, marking a step forward in ties between the two countries.

They also reflect wider interest from Gulf nations in Africa’s natural resources and energy markets. 

For Botswana, the focus is clear: attract capital, create jobs and build industries that can support the economy beyond diamonds.

The latest deals are part of that shift, targeting sectors seen as critical to long-term stability.

Renewable energy push 

A key part of the agreement is a planned 500-megawatt solar power project, supported by battery storage.

The plant is expected to help ease power supply constraints while reducing reliance on fossil fuels. 

The project fits into a broader effort across Africa to expand renewable energy capacity as electricity demand rises and governments look for cleaner, more reliable power sources.

Mining and infrastructure expansion 

The partnership also opens the door to joint exploration of minerals including copper, gold, graphite and iron ore.

Botswana has long been a mining-driven economy, and officials are now working to broaden that base beyond diamonds. 

At the same time, the two sides agreed to support infrastructure aimed at improving supply chains.

Plans include storage facilities linked to Namibia’s Walvis Bay port and the Tshele Hills Strategic Petroleum Depot, steps expected to strengthen fuel access and trade logistics. 

The agreements come as Botswana faces growing economic pressure, including concerns raised by a recent credit rating downgrade tied to weaker diamond demand.

In response, the government has increased engagement with international investors, promoting opportunities in energy, mining and other sectors. 

Together, the deals with Oman highlight Botswana’s effort to steady its economy and build new industries, even as conditions in the global diamond market remain uncertain.