Hon. Keletso Rakhudu Assistant Minister Trade and Industry, Botswana 1

Botswana at a Glance 2 Covers a total area of 582,000 square kilometres, about the same size as Kenya and France. Population of about 2 million (2011 census) GDP/capita P59,245 (US$7,889 )

Investment Climate ▪Botswana continues to receive favorable sovereign risk ratings by both Standard & Poor’s and Moody’s investment agencies for the general economy, and Fraser Institute of Canada and Resource Stocks for the mining industry o Credit rating stands at A o Ranked 17/93 in policy potential index and number 1 in current mineral potential according Fraser Institute Survey of 2011/12 ▪Ranked as most transparent country in Africa. Zero tolerance to corruption. 3

Diamond Mining Overview Botswana’s modern day diamond mining started in the early 1970’s Minerals contribute substantially to the country’s economy; –An average of 19.5% to GDP (2012 figures) –About 31% to Government revenue (2012/13) Diamonds contribute 81% of the minerals contribution to GDP Diamonds contribute about 98% to minerals revenue due to Government 4

Broader Minerals Policy Objectives Maximize the economic benefits to the nation while enabling private investor to earn competitive returns Create a competitive environment to stimulate private sector investment in mineral prospecting and exploitation Encourage linkages with the rest of the economy to expand value addition activities Generate employment and training for Botswana’s citizens Safeguard the environment 5

Diamond Beneficiation Specific Policy objective Transform Botswana from a leading diamond producer by value to a global diamond centre o Licensing conditions that require new mines to market their diamonds locally o Sales Agreement condition that requires our partners, to conduct diamond sales in Botswana and to allocate a portion of production to the local diamond manufacturing industry o Providing conducive environment to efficient diamond sector operation 6

Where is Botswana - Diamond value chain 7 Exploration Mining Sorting Rough trading Cutting polishing Polished trading Jewellery Manuf. Retail Strong participation Just started some participation) some participation some participation

Where is Botswana - Diamond value chain 25 Companies licensed in diamond cutting and polishing since cutting and polishing factories with DTC guaranteed rough diamond supply and 4 with different sources of supply 3302 people employed in cutting and polishing industry in 2012 Goods polished locally grown from $28 million in 2005 to just above $600 million in 2011 One of the companies cutting and polishing diamonds in Botswana opened a jewellery factory in DTC Botswana

Where is Botswana - Diamond value chain A secure diamond transfer facility constructed at SSKA to improve security of transporting diamonds in and out of the country Government established a private company, wholly owed by Government, Okavango Diamond Company (ODC)to market 10-15% of Debswana production independently from De Beers ODC is following an aggressive project implementation plan, the company was launced in September 2013 and has todate made 5 sales (2 in 2014). ODC’s selling model captures broad range of customers across the globe including the DTC sightholders. 9

Opportunities in coal 10 ➢ Know coal deposits; 212 billion; current mined by Morupule Colliery is 3 million tonnes per annum ➢ Domestic use; generation of electricity for domestic consumption ➢ Recently floated 300MW IPP brownfield and greenfield tenders ➢ Export power; using coal to generate electricity for exports to other SADC countries; ➢ Coal exports;exporting coal into the regional and seaborne market;

Opportunities in coal 11 Trans Kalahari Rail & Port Development and operation of a heavy haul rail from the eastern part of Botswana traversing the Kalahari and Namib Deserts to the Atlantic ocean seaport of Walvis Bay The Rail shall cover a distance of approximately 1500km terminating at a 4 x 4 km coal terminal situated about 10 km in-land The terminal will be linked through a conveyor belt loading berths approximately 1km off-shore. The two Countries to sign a bilateral agreement before the end of March 2014 to pave way for the implementation of the project Ponta Techobanine Project ➢ Development and operation of a heavy haul rail from the eastern part of Botswana traversing Zimbabwe through to deep sea port of Techobanine in Mozambique ➢ The Rail shall cover a distance of approximately 1400km terminating at a coal terminal on the Indian Ocean coast in Mozambique

12 Thank you