Botswana’s government has announced plans to open an embassy in Moscow and is inviting Russian investors to explore opportunities in the country’s mining sector, including diamonds and rare earths.
On Sunday, Foreign Minister Phenyo Butale told TASS, Russia’s state news agency, “We firmly believe that Botswana is the best place for investment, considering its political and economic stability. Therefore, we strongly encourage Russian investors to come to Botswana.”
Strategic Diamond Partners
Botswana and Russia are among the world’s largest diamond producers, frequently alternating at the top by production value and volume.
Over the years, the Russian Kristall Production Corporation has maintained a presence in Gaborone, supplying rough diamonds and providing technical expertise in polishing and jewelry manufacturing.
Similarly, Norilsk Nickel (Nornickel), a Moscow-based producer of nickel and palladium, has conducted mining and mineral processing projects in Botswana since 2007.
U.S. Tariff Negotiations
Meanwhile, Botswana has been seeking preferential access to its largest market, the United States, as its diamond sector faces mounting challenges.
Diamonds mined, cut, and polished within Botswana currently face a 15% import tariff, while rough stones attract a 37% duty. Those mined inside the country but cut and polished in third countries, such as India, may encounter tariffs of up to 50%.
The government has been negotiating with the U.S. to reduce these barriers, aiming to protect revenues and sustain one of its key export markets.
Botswana pushes U.S. for duty‑free diamond exports
They proposed giving U.S. companies priority access to Botswana’s critical minerals and rare earths in exchange for reducing tariffs on Botswana’s diamond exports.
President Duma Boko also confirmed in October 2025 that negotiations with the U.S. were “in an advanced stage” and that the country was “on the verge of reaching an agreement” on duty‑free diamond imports.
Managing Challenges and Diversifying Partners
Even as U.S. talks progress, Botswana is actively courting Russian investors to sustain its economy.
The diamond sector, which contributes roughly one-third of national revenue and nearly 75% of foreign exchange earnings, has faced challenges.
In September 2025, the state-owned Okavango Diamond Company (ODC) held an ad-hoc “closed” tender for about 1 million carats of rough stones, which failed to attract buyers meeting reserve prices.
Operations at the flagship Jwaneng and Orapa mines were temporarily paused for three-month intervals to reduce costs.
In addition, existing U.S. tariffs and sanctions on Russian diamonds have introduced uncertainty and increased costs for buyers, particularly as Botswana prepares to serve as a G7 verification node for diamond traceability.
Diamonds Anchor Botswana’s Economy
Diamonds remain central to Botswana’s economy, underpinning both revenue and foreign exchange.
As the country seeks U.S. re-entry to reverse declining sales, it is simultaneously looking to Russia to diversify investment and strengthen its mining sector, while continuing to balance engagement with multiple global partners to protect and sustain its key industries.
