Berliner Tageblatt - Botswana seals energy, mining deals with Oman

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Botswana seals energy, mining deals with Oman
Botswana seals energy, mining deals with Oman / Photo: © AFP/File

Botswana seals energy, mining deals with Oman

Botswana has signed energy and mining exploration agreements with Oman as it seeks to deepen economic ties with the sultanate, the presidency said.

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The Southern Africa nation has been courting Gulf states as it seeks to diversify an economy heavily reliant on diamonds, of which it is the world's leading producer by value.

President Duma Boko and Oman's Sultan Haitham bin Tariq agreed to develop a 500-megawatt solar photovoltaic plant with battery storage, the presidency said on Monday.

The two sides also signed a joint exploration agreement covering copper, gold, graphite and iron ore.

A separate infrastructure deal includes storage at Namibia's port town of Walvis Bay and the Tshele Hills Strategic Petroleum Depot to bolster supply security.

The presidency did not disclose the value of the deals.

Botswana relies on diamonds for about a third of its gross domestic product, but revenues have fallen sharply due to weak prices and rising competition from lab-grown stones, which has curbed demand.

In March, S&P Global Ratings downgraded the country's long-term foreign and local currency sovereign credit ratings, citing "structural weakness in global diamond demand."

"The downgrade reflects our view that global diamond demand will likely remain weak for longer, weighing on Botswana's already-strained economy and public finances," the New York-based agency said.

Boko used his visit to France last week to meet employers federation MEDEF and publish an article in business daily La Tribune touting Botswana's appeal to investors.

The country is among several African governments and firms seeking a stake in De Beers, the world's leading diamond company, as the industry grapples with a prolonged downturn.

De Beers is majority-owned by British mining giant Anglo American, with a 15 percent stake held by Botswana.

In February, Anglo American cut the value of De Beers by $2.3 billion after reporting similar impairment charges in 2025 and 2024, leaving the unit with a value of $2.3 billion.

O.Lorenz--BTB