Mining sector targets import substitution as next frontier
staff writer | Tuesday July 7, 2026 11:31
Speaking at the Future of Mining Summit in Gaborone last week, mining executives outlined a strategy that would see the sector leverage its vast purchasing power to develop citizen-owned suppliers, build local manufacturing capacity and reduce Botswana's dependence on imported goods and services.
The approach, increasingly being championed by the Botswana Chamber of Mines (BCM), seeks to reposition mining companies from being merely extractors of minerals to becoming anchor customers for emerging industries.
Addressing delegates at the summit, Debswana Orapa and Damtshaa Mines General Manager, Mogakolodi Maoketsa, described local manufacturing development through mining procurement as a 'low-hanging fruit' for Botswana's economic transformation agenda.
'The development of local industries through import substitution initiatives remains one of the mining sector's most critical contributions to Botswana's broader economic growth,' Maoketsa said.
His remarks come as Botswana grapples with declining diamond revenues and intensifies efforts to diversify an economy that remains heavily dependent on mineral exports.
Mining companies collectively spend billions of pula annually procuring equipment, consumables, engineering services, chemicals, construction materials and operational inputs, much of which is sourced from South Africa and international suppliers. Industry leaders believe redirecting even a fraction of that expenditure towards local producers could stimulate manufacturing growth, create jobs and establish industrial capabilities that outlast the life of mines.
'Mining companies can provide the initial market base needed for local manufacturers to grow, improve their capabilities, and eventually compete beyond the mining sector,' Maoketsa noted.
'Through local procurement, Botswana can build stronger industrial capacity and value chains that extend beyond mining,' he said.
He argued that mining procurement should not be viewed merely as an operational expense, but as a strategic economic development tool capable of building domestic industrial capacity and strengthening national value chains.
According to Maoketsa, mining houses and other large consumers of goods can serve as catalysts for industrial development by creating reliable demand for locally manufactured products, thereby enabling businesses to scale, improve quality standards and eventually access regional and international markets.
To support this objective, he revealed that the BCM has partnered with the United Nations Development Programme (UNDP) on a supplier development programme designed to strengthen local manufacturing capabilities. The chamber has also established an annual Local Manufacturing Summit, supported by government, to promote industrial growth and deepen collaboration between mining companies and domestic suppliers.
The strategy aligns with broader efforts to reduce Botswana's import bill while creating sustainable industries capable of surviving beyond the country's mineral extraction cycle.
Maoketsa said achieving this vision would require stronger partnerships between government, mining companies, communities and the private sector.
'As the world of mining evolves, Botswana has an opportunity to position itself as a responsible and competitive mining destination, one that attracts investment, develops local capabilities, protects the environment, and ensures that the benefits of mineral wealth are shared across society,' he said.