The Diamonds for Development Fund, a new initiative aimed at converting Botswana's mineral fortune into sustainable industries and jobs, has received its initial P1 billion contribution from De Beers Group. Established through a partnership between the Government of the Republic of Botswana and De Beers Group, the Fund is tasked with transforming the wealth generated from Botswana's soil into diversified, productive, and sustainable resources. This milestone moves the institution from intention to deployment, marking a significant step towards achieving its goals.
The Fund's strategic posture is unapologetically catalytic, aiming to crowd in investment, nurture enterprise, and manufacture jobs in an economy where formal employment has struggled to keep pace with the ambitions of its young population. During a recent visit to Botswana, the Fund's Board of Directors, led by Chairman Dr. Akinwumi A. Adesina, engaged with stakeholders to sharpen the Fund's direction. The sessions were guided by the Setswana principle of therisanyo, which emphasizes consultation, dialogue, and shared understanding before action.
Dr. Adesina, former President of the African Development Bank, emphasized the importance of collaboration in achieving transformational work. He stated that the Fund would bring together government, business, financial institutions, industry, and development partners to turn high-potential opportunities into investable projects. The Fund aims to position itself as an institution that de-risks, packages, and convenes, bridging the gap between opportunities and investable projects.
The Fund's board comprises a diverse group of experts with extensive experience in various fields. Alongside Dr. Adesina, the board includes Dr. Anne Jorun Aas, a nuclear chemist with expertise in renewable energy and smallholder agriculture; Ms. Kathleen Kallot, a veteran of artificial intelligence and sovereign data; and Ms. Monhla Hlahla, with four decades of infrastructure and development finance experience. The board also includes representatives from the diamond industry and the Botswana state.
The Fund's mandate is generational, aiming to help economically viable businesses and sectors deliver diversification and long-term employment, aligned with Botswana's National Development Plan 12 and the Botswana Economic Transformation Plan. The Fund's anchoring to these national plans signals an intent to fold its ambitions into the state's development machinery, rather than operating in parallel.
The launch of the Diamonds for Development Fund marks a significant shift in Botswana's economic strategy, as the country seeks to reduce its reliance on diamond mining. While the country has talked about diversification for decades, the mineral's share of the economy has proved difficult to dislodge. The Fund's backers argue that this attempt is distinct, with serious money, an independently governed structure, and a board with convening power.
The test ahead for the Fund is unforgiving, but its success could have far-reaching implications for Botswana's economic future. As Dr. Adesina noted, "Diamonds built Botswana's past. Through the Diamonds for Development Fund, they can help build its future too." The Fund's ability to deliver on its ambitious goals will depend on its capacity to mobilize private capital, nurture enterprise, and manufacture jobs, ultimately contributing to a more sustainable and diversified economy.
Key points
- The Diamonds for Development Fund has received an initial P1 billion contribution from De Beers Group.
- The Fund aims to transform Botswana's mineral fortune into sustainable industries and jobs.
- The Fund's board comprises a diverse group of experts with extensive experience in various fields.
