Botswana

Regional economic diversification

Client: Debswana Diamond Company

Paving the way for economic transformation

Starting point

A call for economic diversification

Botswana has long been recognised as a successful African example of national economic development on the back of natural resource exploitation. Debswana, the world’s leading diamond producer by value, has been central to this story: output from its four mines across the country contributes a staggering 30% of national GDP.

Economic assessment at the sub-national level is more ambiguous, however, as mining has often failed to meet expectations. Local economic concerns are compounded by the approaching reality of mine closure. In the absence of alternative opportunities, the decommissioning of operations will hit host regions particularly hard. The Government of Botswana is actively considering the next phase of national development, giving prominence to investment in the non-mining economy.

A combination of spatial and non-spatial analyses helps to map competitive advantage and identify investable opportunities.
A combination of spatial and non-spatial analyses helps to map competitive advantage and identify investable opportunities.
A combination of spatial and non-spatial analyses helps to map competitive advantage and identify investable opportunities.

Our approach

Comprehensive regional planning process

Ergo’s intervention was driven by two main objectives: First, to carry out a widespread process of participatory regional planning and produce a development blueprint in areas under the influence of Debswana’s operations. Second, to link mining’s operating requirements with the economic aspirations of impacted regions, supporting strategic alliances to foster regional growth.

In practice, the work encompassed spatial and sectoral analysis, extensive on-the-ground consultations, economic diagnosis, deep dives into prioritised sectors, identification of infrastructure gaps, and business modelling of investment opportunities. The emerging strategy defined a new compelling vision of economic diversification.

The outcome

A new regional strategy and implementation roadmap

The study put forward a clear strategy for economic diversification reflecting the regions’ underlying potential and limitations, as well as the economic opportunities from Debswana’s presence on the ground. More specifically, the analysis detailed five new investable opportunities with potential to underpin the new economic diversification strategy.

The study also designed an implementable roadmap for execution. This most practical component defined a clear action plan, an institutional architecture for strategy delivery, required resources, stakeholder engagement plan, impact estimates, and monitoring systems. The work contributed the preparatory material for a roadshow to secure institutional support and lock in investors.

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