Botswana Announces Citizenship Programme To Supplement Diamond Export Revenues

Botswana, the continent’s biggest diamond producer, is accelerating efforts to diversify its economy through a new ‘Citizenship By Investment’ (CBI) programme, which was unveiled in September 2025. The move comes as the country grapples with a deepening economic contraction driven by the current global diamond market slump.

Botswana’s economy contracted by 3% in 2024, and the downturn has intensified, with the Gross Domestic Product (GDP) plunging 5.3% year-on-year in the second quarter of 2025. This represents the steepest economic contraction since Q2 2020.

This financial strain is directly linked to the crisis in the diamond sector: rough diamond sales dropped by over 40% in the first half of the year, and on September 25, 2025, the state-owned Okavango Diamond Company (ODC) took the drastic step of withdrawing an entire 1 million-carat auction rather than accepting low bids.

The diamond industry, which accounts for one-third of government income, is struggling against high global inflation, a collapse in the Chinese housing market, and the dramatic rise of lab-grown diamonds, which now capture a significant share of the engagement ring market.

In response, the government has launched the “Impact Investment Programme,” setting a preliminary minimum contribution between USD 75,000 and USD 90,000 for the CBI, which would position it as one of the most affordable globally. The programme aims to launch in early 2026.

Botswana has contracted migration-for-business experts Arton Capital to structure the details of the CBI. While the application and eligibility details are still pending, applicants will be directed to deploy investment in priority sectors like luxury tourism, renewable energy, financial services, housing, and mining (beyond diamonds). The need is critical: Fitch Solutions has downgraded Botswana’s credit rating to ‘BBB’ with a negative outlook, and the government’s fiscal deficit is set to reach 9.2% of GDP for the 2024/2025 fiscal year.

Other key export sectors, including livestock and frozen beef, have also been negatively impacted. A Foot-and-Mouth Disease (FMD) outbreak in the earlier part of 2025 severely hampered this sector, which typically faces border restrictions during FMD incidents. The new CBI, coupled with the recent launch of a Sovereign Wealth Fund in September 2025, represents a multi-pronged strategy to inject cash, expand employment opportunities, and secure the nation’s financial future beyond diamonds.