Botswana’s mining FDI hit P47.8B in 2024

Foreign direct investment (FDI) in Botswana’s mining sector surged to P47.8 billion in 2024, marking a P15 billion increase from the previous year, according to an update from the Bank of Botswana. The mining sector dominated FDI inflows, accounting for 48.8 percent of the country’s total investment, up from 37.5 percent in 2023, highlighting its growing appeal to investors. The wholesale and retail trade sector ranked as the second-largest recipient, drawing P25.8 billion in FDI.

The financial sector, primarily commercial banks, attracted P15.3 billion, while other sectors; including transportation, storage and communication, construction, real estate, and utilities; collectively received P4 billion. Manufacturing investment dropped sharply to P3.8 billion from P27.7 billion the previous year, and the hospitality sector saw FDI decline from P1.7 billion in 2023 to P1.2 billion in 2024. Botswana’s FDI landscape in 2024 reflected both continuity and change.

The United Kingdom solidified its role as the top investor, contributing 56.9 percent of total FDI, up from 54.7 percent the previous year. UK investments rose from P47.7 billion in 2023 to P55.8 billion in 2024, driven largely by the mining sector. The Bank of Botswana noted that this growth underscores the enduring strength of Botswana’s diamond industry and the country’s stable, investor-friendly environment.

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South Africa, traditionally the second-largest investor, saw its share of FDI fall to 13.8 percent from 15.5 percent in 2023, though its investment value remained steady at P13.5 billion over both years. The bank attributed the decline in South Africa’s share to increased competition in key sectors like mining and retail, but emphasized that South African investments remain diversified across finance, wholesale and retail, and manufacturing. Mauritius continued to be a notable source of investment, though its share dipped slightly to 6.5 percent from 7.4 percent in 2023.

The value of Mauritian investments decreased marginally from P6.5 billion to P6.4 billion, spread across mining, finance, wholesale and retail, and information and communication sectors. A significant new player emerged in 2024: China. Accounting for 5.7 percent of total FDI, Chinese investments reached P5.6 billion, focusing primarily on mining, especially copper.

This shift was highlighted by MMG Ltd.’s acquisition of the Khoemacau Copper Mine. Analysts at the Bank of Botswana described this as a new chapter in the country’s investment narrative, reflecting China’s strategic global resource acquisition. The rise of China, and Hong Kong, in the FDI rankings coincided with the departure of Australia and Canada from the top positions, signaling a realignment in global mining investments.

Other notable investors included the Cayman Islands and the British Virgin Islands, each contributing P3.7 billion. Investments from the rest of the world totaled P8.6 billion, indicating a broadening diversity of Botswana’s investment sources. Despite these inflows, recent data from the global rating agency Standard & Poor’s shows Botswana’s net FDI as a percentage of GDP declined from 3.8 percent in 2023 to 2.4 percent in 2024, and further dropped to 0.5 percent in 2025. The agency forecasts a modest recovery, projecting net FDI per GDP could climb to 2.8 percent by 2029.

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