Botswana has achieved a significant milestone, ranking seventh globally in the Fraser Institute's Investment Attractiveness Index (IAI). This ranking is a notable improvement from 20th out of 82 jurisdictions last year to seventh out of 68 in 2025. The IAI is a composite index that combines the Policy Perception Index (PPI) and the Best Practices Mineral Potential Index (BPMPI).
The Fraser Institute, a leading Canadian think tank, conducts an annual survey of mining companies to assess how mineral endowments and public policy factors affect exploration investment. The institute's report evaluated various jurisdictions based on factors such as taxation, regulatory uncertainty, and mineral potential. Botswana's improvement in ranking is attributed to miners' more positive perceptions of the country's policies and mineral potential.
Botswana's score in the BPMPI rose by 10.12 points, moving from 24th out of 58 to 14th out of 41. The PPI also increased by 15.45 points, improving its ranking from 14th out of 82 in 2024 to 2nd out of 68 in 2025. This significant improvement in policy perception and mineral potential has contributed to Botswana's rise in the global rankings.
Despite the positive ranking, investors expressed growing concern over socio-economic agreements and uncertainty surrounding disputed land claims. However, they showed greater comfort with the availability of infrastructure, skilled labour, and security. Insights from mining insiders revealed that 40% of their investment decisions were based on policy factors.
Botswana is the only African jurisdiction to break into the top 10 mining jurisdictions, which are predominantly located in North America, Europe, and Australia. The report highlighted that while mineral potential is crucial, government policies play a significant role in encouraging or dissuading mining investment. Many regions with attractive geology and competitive policies can redirect exploration investment away from jurisdictions with unattractive policies.
The survey examined at least 15 policy factors affecting exploration, including political stability, trade barriers, and the quality of geological databases. The report also noted that provincial or state governments in many countries wield significant authority over mining policy, shaping the policy environment.
The top 10 mining jurisdictions in the world are Nevada, Ontario, Saskatchewan, South Australia, Arizona, Norway, and Botswana, which ranks seventh. In contrast, China, Burkina Faso, and Egypt are among the least attractive jurisdictions for mining investment. Botswana's strong performance in the PPI rankings, moving from 14th to 2nd place, signals confidence in its mining policies.
Key points
- Botswana ranks seventh globally in the Fraser Institute's Investment Attractiveness Index.
- The country's improvement is driven by positive perceptions of its policies and mineral potential.
- Botswana is the only African jurisdiction in the top 10 mining jurisdictions.
