A few decades ago, Botswana was not as we know it now. Unlike the safaris, wildlife reserves and entrepreneurs, it was once counted amongst the poorest in the world. It gained independence from Britain a year ago, with little to no infrastructure, and the lack of formal education was a distressing problem. However, a few years later, the very first diamond deposits were discovered in Botswana in 1967, and this discovery changed every aspect of Botswana. It has driven the economic growth of the country and has helped to pull its citizens out of poverty for years. With diamond mines, the country invested in health care, education, and general infrastructural development.
How Does The Diamond Industry Work?
The companies in the industry have to operate under a license agreement with the government. The government of Botswana entirely owns all of ODC, and the company commits to CSR programs. The regulatory and policy climate of Botswana has made it a very desirable location for international investment. Moreover, the U.S.-Africa trade statute has helped foster bilateral trade and investment connections, thus helping achieve this goal.
The country’s sizeable investments in the Pula Fund, the largest sovereign wealth fund in Africa, supplement the industry’s feasibility. The industry contributes to increasing Botswana’s GDP, foreign exchange earnings, and government income, and it is even more appealing to Debswana, the country’s largest private sector employer.
What Should We Learn?
A nation known for manufacturing diamonds, Botswana has moved toward sustainability through innovation and environmentally conscious practices. To improve its operations, ODC is funding research and development projects such as building a solar power plant. De Beers commits to conserving wildlife habitat, creating the Jwana and Orapa Game Parks, and raising and moving rhinos. The De Beers Group has worked with UN Women. These initiatives are for women-owned microenterprises and advanced gender parity in STEM in nations that produce diamonds. The AIDS epidemic in the mid-1980s slowed Botswana’s progress, but President Festus Mogae countered the pandemic with an innovative plan. Additionally, Debswana ran hospitals at the Orapa and Jwangeng mines and provided workers and their spouses with anti-retroviral medication and free testing. Diamonds currently account for up to 90% of Botswana’s export revenue and over one-third of its Gross Domestic Product.
The Bottomline
Botswana focuses on sustainability, which involves doing less harm to the environment and getting more out of what benefits the local communities. All this is done while maintaining high standards of social and environmental responsibility within the diamond industry. Influential figures lead initiatives in the sphere of community development, environmental preservation, and mine site rehabilitation projects. Furthermore, water resources and wildlife habitats are protected through rules, monitoring systems, and other stern systems. The process for getting certified by ODC verified the diamonds to be of ethical origin and traced back to Botswana.
