Botswana offers U.S. mineral access to secure tariff relief

Botswana is proposing to grant American companies priority access to its critical minerals and rare earth elements in exchange for the removal of U.S. reciprocal tariffs.

The development has sparked debate over economic strategy, transparency, and national interest. There are fears that the negotiations, which are shrouded in secrecy, have the potential to weaken local beneficiation, disrupt partnerships with firms like Debswana, while others argue that the deal could shield Botswana from damaging tariffs.

On the other hand, the government has dismissed concerns about the negotiations as purely speculative.

Vice President Ndaba Gaolathe and Trade Minister Tiroeaone Ntsima led negotiations with U.S. Commerce Secretary Howard Lutnick and the U.S. Trade Representative last month, where they submitted a proposal titled “Botswana Strategic Bilateral Engagement on U.S. Reciprocal Tariffs,” which includes exploration rights in three high-value geological zones.

Botswana is racing against time to convince the U.S. to remove the tariffs that pose a threat to Botswana's diamond exports to the U.S.

The government dangled the idea of granting the U.S. access to critical mine reserves, including rare metals, in a document seen by this publication titled “Botswana Strategic Bilateral Engagement on U.S Reciprocal Tariffs.”

In his response to the government, Howard indicated that the office of the USTR will share a framework detailing the specific U.S. trade concerns for Botswana's consideration. In the meantime, Botswana suggested offering the U.S. priority access to critical minerals while waiting for a framework detailing the specific trade concerns of the U.S.

The document further states that beyond mining, Botswana has invited U.S. investment in energy, technology, infrastructure, and health sectors.

“The government would ease entry through the Botswana One Stop Service Centre, streamlining permits and approvals. Botswana has also pledged to reduce non-tariff barriers and accept certain U.S. product standards to deepen trade relations,“ the document states.

The proposal went further to explain that Botswana is willing to receive specific U.S. requests and concerns relating to both Non-Tariff Barriers (NTB) and trade facilitation to facilitate free movement of U.S. imports into Botswana.

“As such, Botswana is a firm supporter of the removal of all NTBs in international trade. The process of removing NTBs is currently underway, as evidenced by, for example, the rapid digitalisation of administrative processes related to investor facilitation, improving transparency in, and streamlining processes for work permits. Botswana will require assistance of the U.S. in expediting conclusion of these initiatives in the form of both technical and financial support,” the proposal states. Critics warn that the negotiations that have not been publicly debated or tabled before parliament could undermine democratic accountability.

Professor Kekgaoditse Suping of the University of Botswana said the urgency of tariff relief may explain the executive-led talks, but urged transparency and community consultation going forward.

“First-mover rights may undermine value addition, threaten jobs, or weaken Debswana,” he warned, adding that safeguards such as skills transfer and local equity participation are essential.

“Concerns are valid, but risks can be managed by enforcing beneficiation obligations, skills transfer, and ensuring local equity participation,” he said.

Suping said that there is a need for the government to ensure legal compliance to avoid breaching the mineral rights or the Tribal Land Act.

“Possibly, if access affects communal land or bypasses licensing procedures. The government should ensure legal compliance and involve affected communities,” Suping advised. He conceded that the deal could shield Botswana from damaging tariffs, safeguard jobs, and position the country as a key supplier of resources essential to the global green economy.

Ntsima downplayed concerns of transparency in negotiations and issues of beneficiation.

Ntsima dismissed the concerns as “speculative,” emphasising that the government will not share any details about the negotiations due to a non-disclosure agreement. The government emphasised in the proposal that the deal will secure long-term trade benefits, attract U.S. investment beyond mining, and align Botswana with international trade standards.

It remains to be seen whether Washington will accept Botswana’s offer.

Permanent Secretary in the Ministry of Trade and Entrepreneurship, Joel Ramaphoi, declined to say if the recent reduction of U.S. tariffs from 37 percent to 15 percent was linked to the talks.

He insisted that the government remains confident that the ongoing negotiations will achieve full tariff elimination.

Ramaphoi indicated that the government will soon share more details about the outcome of the ongoing negotiations.

Ramaphoi stated in a communique that the United States Government has adjusted its Reciprocal Tariff Rates for its foreign trading partners, including Botswana.

“Under the revised structure, the Reciprocal Tariff Rate applicable to Botswana’s exports to the United States has been reduced to 15 percent, down from the previous rate of 37 percent announced on 2nd April 2025,” he said.

Ramaphoi emphasised that Botswana continues to engage the U.S. to reduce further or eliminate the 15 percent Reciprocal Tariff.

Botswana Chamber of Mines Chief Executive Officer, Charles Siwawa, posits that the Mineral Policy of Botswana, which came into effect in 2022, encourages domestic processing and value addition to raw materials rather than exporting raw minerals.

Asked if the move to grant U.S companies access to Botswana’s rare earth minerals could lead to a loss of local beneficiation opportunities if raw materials are exported, Siwawa stated that the Mineral Policy should cover issues of beneficiation.

He stated that the new U.S. companies' exploration could boost employment and State revenues through taxes and royalties.

Siwawa stressed that the American companies will still operate within Botswana’s strict regulatory regime, including environmental and social impact assessments.

Mineral rights, he added, remain under government custodianship and cannot be permanently transferred.

Ministry of Finance Deputy Secretary for Financial Policy, Boikanyo Mathipa, was quick to point out that President Duma Boko appointed the VP to facilitate trade negotiations.

Boko recently revealed that during his initial visit to the United States, he met with US Secretary of State Marco Rubio, where he proposed zero tariffs between Botswana and the United States.

Botswana's efforts to convene a meeting between President Boko and President Trump hit a snag.

Botswana is the world’s second-largest diamond producer after Russia, and the mineral exports to the U.S. earn the country $500 million every year.

Boko was concerned that the U.S punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa.