Business

Botswana secures tariff-free entry into US market

Partners: President Boko, Kenewendo and other Botswana officials during a previous engagement with US Secretary of Commerce, Howard Lutnick and others
 
Partners: President Boko, Kenewendo and other Botswana officials during a previous engagement with US Secretary of Commerce, Howard Lutnick and others

The US is the biggest market for natural diamonds accounting for more than 50% of demand. Mmegi is informed that the US will not put tariffs on Botswana and Namibia, while Angola and South Africa will be tariffed at 12.5 percent.

As of 24 July 2026, Botswana exports to the US, including natural diamonds, enter duty-free and continue to benefit from preferential access under the African Growth and Opportunity Act (AGOA).

“The confirmation that Botswana’s natural diamonds will once again enter the United States duty-free is welcome news for Botswana’s diamond industry,” Minerals and Energy minister, Bogolo Kenewendo, told Mmegi in a brief statement. “It restores certainty in one of our most important markets and strengthens the competitiveness of our responsibly sourced natural diamonds.”

Kenewendo added that following months of sustained engagement led by President Duma Gideon Boko, government welcomes this positive outcome for the diamond industry. She said the move reinforces Botswana’s position as a trusted and reliable partner in the global diamond sector.

“We will continue working with industry partners to protect the value of Botswana’s natural diamonds, strengthen demand, and ensure our diamond industry continues to create jobs, growth and lasting benefits for the people of Botswana,” she said.

Separately, officials said the most significant commercial risk for Botswana remains India.

“India now faces 10% tariffs for exports to the US but further tariffs remain possible,” a statement reads. “While current indications suggest that diamonds will be exempted under a future US-India trade deal, uncertainty remains until any agreement is finalised.”

Botswana’s attainment of tariff free status comes after the US Trade Representative launched Section 301 investigations into 60 economies to determine whether they had adopted and effectively enforced prohibitions on goods produced using forced labour.

Additional investigations were initiated against six countries for excess capacity concerns. As of 24 July 2026, those investigations are still under way. Botswana was not one of the countries investigated under either of those Section 301 actions.

Officials said the most important trade policy issue for Botswana currently is the future of AGOA, which is scheduled to expire on 31 December 2026.

“The US Administration has indicated support for renewal only if the programme is modernised, potentially including revised eligibility requirements and greater reciprocity in market access. “Discussions are expected to intensify when the US Congress returns in September. “Failure to renew AGOA would reduce Botswana’s preferential access to the US market and affect the competitiveness of Botswana exports.”

Officials said the priority now is to safeguard the tariff-free position, through AGOA renewal in Washington and close monitoring of tariff developments affecting India and the global diamond value chain.