Botswana Mines Shine Again: Top of the Pile in Africa

Botswana has cemented its reputation as a top global destination for mining companies, according to the Fraser Institute’s Annual Survey of Mining Companies. This prestigious ranking places the African nation not only as the number one jurisdiction on the continent, but also cracks the coveted top 10 worldwide.

The Fraser Institute survey, a key benchmark in the industry, gauges the perceptions of mining company executives on factors influencing their investment decisions. While informal, it provides valuable insights into government policies and regulations that foster – or hinder – a welcoming environment for mining investment.

This year, Utah in the United States takes the pole position with a perfect score of 100 on the Policy Perception Index (PPI). However, Botswana remains a star performer, securing the coveted fourth place globally and retaining its title as Africa’s champion.

While Botswana maintains its top spot in Africa, a slight dip in its PPI score suggests some areas for improvement. The report highlights concerns raised by mining executives regarding skilled labour, infrastructure, geological data availability, and uncertainties surrounding protected areas. These factors contributed to a decline in Botswana’s Investment Attractiveness Index, placing it 15th this year compared to a top-10 ranking in 2022.

However, the news isn’t all grim. The report acknowledges positive developments in other African nations. Morocco emerges as the second-most attractive jurisdiction in Africa, boasting an improved PPI score and climbing several spots in the overall rankings. This positive shift reflects a perceived decrease in concerns over regulations, political stability, and the legal system.

South Africa also shows signs of progress, with its policy score rising. However, its overall ranking dipped slightly compared to last year.

Meanwhile, Zimbabwe, grappling with the lowest rankings in Africa for both policy and investment attractiveness, has shown a glimmer of hope with a significant improvement in its policy score.

For Botswana, this ranking serves as a double win – a testament to its established strengths and a prompt to address emerging concerns. By continuing to refine its policies and infrastructure, Botswana can solidify its position as a global leader in attracting mining investment, ensuring a bright future for the industry and the nation’s economy.