Botswana, famed for its sustainably mined diamonds that transformed its economy from one of the poorest in 1966 to middle-income status, now faces shifting fortunes in a rapidly evolving global market. To safeguard its economic future, the country must diversify.
One promising option is to establish a Gaborone Multi-Precious Commodity Centre (GMPCC), which would initially focus on gold and later include silver, platinum, palladium, and non-diamond gemstones. Gold is among the world’s most desirable assets, often seen as a hedge against inflation and economic uncertainty. Africa produces gold worth approximately USD 70 billion in trade each year, but much of it leaves the continent for international markets, bypassing value addition at home. Why allow this lucrative stream - close to Botswana’s borders - to flow elsewhere when Gaborone could act as a gateway for African producers? Dubai’s Multi Commodities Centre (DMCC) offers a proven model.
Established in 2002, it has evolved into a globally recognised hub for precious metals and gems, propelled by strategic geography and robust governance. Botswana can replicate, or even surpass this success. Its Diamond Hub already has world-class security, sorting, and valuation systems - if the country can handle diamonds (one of the highest-value commodities by weight), it can readily extend expertise to gold bars, silver bullion, platinum ingots, and gemstones. Openness for Investment and Innovation Botswana has established Special Economic Zones (SEZs) to attract foreign investment by offering unique regulations, taxes, and customs arrangements. Integrating a GMPCC into Gaborone’s Airport Gateway City SEZ under the Special Economic Zone Authority (SEZA) would create an appealing ecosystem for traders and mining companies. A tax rate of between 0% and 5% could give Gaborone a competitive edge over other global centres. Critics might ask why pivot to gold and other metals when diamonds are Botswana’s comparative advantage.
The simple answer is diversification. Overreliance on a single commodity is risky, and while global diamond demand remains significant, it is not immune to economic shifts. Gold and precious metals have a proven track record of weathering market turbulence. Securing just 10% of Africa’s gold trade in the fifth year - and doubling that by the tenth - could translate into USD 7–14 billion in annual transactions. A significant share could directly benefit Botswana’s national revenue, creating jobs and spurring technological development. Establishing gold refining capacity could be achieved within two years at a cost of P1–2 billion. This would add value at the source, leading to downstream growth in areas like equipment supply, logistics, and security, eventually extending to jewellery manufacturing. Obtaining London Bullion Market Association (LBMA) accreditation would position Botswana among the continent’s refining elite. Its track record of integrity in diamond handling could confer a high degree of trust in precious metals refined in Gaborone.
The Growth Potential Beyond Gold
While gold would be the initial focus, the GMPCC could later expand to include silver, platinum, palladium, and non-diamond gemstones. Platinum-group metals are especially relevant to green technologies, such as catalytic converters and fuel cells, and southern Africa has abundant deposits. With improved transportation corridors and supportive policies, Gaborone could become a strategic centre for these commodities, offering advanced testing, certification, refining, and trading platforms under one roof.
A Vision for the Future
Ultimately, the real question is, “Why not create a GMPCC?” Botswana stands at a critical juncture. Decades of success in diamond trading and a new administration keener than ever to diversify are a solid foundation. By establishing a multi-precious commodity hub in Gaborone, Botswana can not only propel its own economy forward but also offer a regulated, transparent gateway for African producers. As demand for precious metals grows and global markets shift, Botswana has a timely chance to lead Africa into a new era of economic empowerment.
*Tonderai Tsara is an Economic Growth Activist and Entrepreneur who writes a monthly column “Growth” in this newspaper on projects, ideas, and initiatives that could grow Botswana’s Economy
One promising option is to establish a Gaborone Multi-Precious Commodity Centre (GMPCC), which would initially focus on gold and later include silver, platinum, palladium, and non-diamond gemstones. Gold is among the world’s most desirable assets, often seen as a hedge against inflation and economic uncertainty. Africa produces gold worth approximately USD 70 billion in trade each year, but much of it leaves the continent for international markets, bypassing value addition at home. Why allow this lucrative stream - close to Botswana’s borders - to flow elsewhere when Gaborone could act as a gateway for African producers? Dubai’s Multi Commodities Centre (DMCC) offers a proven model.
Established in 2002, it has evolved into a globally recognised hub for precious metals and gems, propelled by strategic geography and robust governance. Botswana can replicate, or even surpass this success. Its Diamond Hub already has world-class security, sorting, and valuation systems - if the country can handle diamonds (one of the highest-value commodities by weight), it can readily extend expertise to gold bars, silver bullion, platinum ingots, and gemstones. Openness for Investment and Innovation Botswana has established Special Economic Zones (SEZs) to attract foreign investment by offering unique regulations, taxes, and customs arrangements. Integrating a GMPCC into Gaborone’s Airport Gateway City SEZ under the Special Economic Zone Authority (SEZA) would create an appealing ecosystem for traders and mining companies. A tax rate of between 0% and 5% could give Gaborone a competitive edge over other global centres. Critics might ask why pivot to gold and other metals when diamonds are Botswana’s comparative advantage.
The simple answer is diversification. Overreliance on a single commodity is risky, and while global diamond demand remains significant, it is not immune to economic shifts. Gold and precious metals have a proven track record of weathering market turbulence. Securing just 10% of Africa’s gold trade in the fifth year - and doubling that by the tenth - could translate into USD 7–14 billion in annual transactions. A significant share could directly benefit Botswana’s national revenue, creating jobs and spurring technological development. Establishing gold refining capacity could be achieved within two years at a cost of P1–2 billion. This would add value at the source, leading to downstream growth in areas like equipment supply, logistics, and security, eventually extending to jewellery manufacturing. Obtaining London Bullion Market Association (LBMA) accreditation would position Botswana among the continent’s refining elite. Its track record of integrity in diamond handling could confer a high degree of trust in precious metals refined in Gaborone.
The Growth Potential Beyond Gold
While gold would be the initial focus, the GMPCC could later expand to include silver, platinum, palladium, and non-diamond gemstones. Platinum-group metals are especially relevant to green technologies, such as catalytic converters and fuel cells, and southern Africa has abundant deposits. With improved transportation corridors and supportive policies, Gaborone could become a strategic centre for these commodities, offering advanced testing, certification, refining, and trading platforms under one roof.
A Vision for the Future
Ultimately, the real question is, “Why not create a GMPCC?” Botswana stands at a critical juncture. Decades of success in diamond trading and a new administration keener than ever to diversify are a solid foundation. By establishing a multi-precious commodity hub in Gaborone, Botswana can not only propel its own economy forward but also offer a regulated, transparent gateway for African producers. As demand for precious metals grows and global markets shift, Botswana has a timely chance to lead Africa into a new era of economic empowerment.
*Tonderai Tsara is an Economic Growth Activist and Entrepreneur who writes a monthly column “Growth” in this newspaper on projects, ideas, and initiatives that could grow Botswana’s Economy
