Botswana’s Diamonds Fund Seeks to Unlock Private and International Investment for Economic Diversification
Botswana’s newly established Diamonds for Development Fund is seeking to mobilise additional domestic, private, institutional and international capital to support economic diversification and long-term investment across the country.
Speaking in Gaborone, Fund Chairman Dr Akinwumi A. Adesina said the Fund would bring together government, businesses, financial institutions, industry and development partners to transform high-potential opportunities into investable projects.
The Fund was established through an agreement between De Beers and the Government of Botswana and will operate independently.
It has received an initial P1 billion contribution from De Beers, with further contributions expected in future years based on the De Beers Group’s profits and dividends.
Adesina said the Fund is independently governed by a Board of Directors, with five of its 10 members, including the chairman, serving as independent directors.
He said the Fund is neither a De Beers corporate foundation nor a government programme, but a long-term investment platform with a mandate focused on supporting Botswana’s economic transformation.
The Fund will target economically viable businesses and sectors across different value chains and regions, with support covering project preparation, development and appropriate risk-sharing mechanisms designed to attract additional investment.
“Our strategy discussions are pointing us towards a catalytic investment platform — one that uses its resources to unlock much larger pools of domestic, private, institutional and international capital,” Adesina said.
The Fund is expected to focus on developing investment-ready projects and building programmes and portfolios capable of generating measurable economic impact.
Its performance will be assessed based on additional capital mobilised, businesses and jobs created, export revenues generated, development impact and financial returns achieved for Botswana.
The initiative is aligned with Botswana’s National Development Plan 12 and the Botswana Economic Transformation Plan, as the country seeks to broaden its economy beyond diamonds and strengthen long-term sources of growth and employment.
Adesina, who served as President of the African Development Bank for 10 years, said the Fund’s approach would focus on creating opportunities that can attract further investment and contribute to sustainable economic development.
