Lack of skilled labour, uncertainty about protected areas and poor infrastructure have brought down Botswana performance in the latest Fraser Institute Survey of Mining Companies.
With a score of 76.87, this year, down from 82.75 last year, Botswana ranked fifteenth out of 86 jurisdictions. The survey says Botswana had ranked tenth out of 62 jurisdictions across the world last year.
“Botswana’s lower Policy Perception Index (PPI) score this year (-5.6 points) reflects increasing concerns about skilled labor (+15 points), infrastructure (+9 points), its geological database (+9 points) and uncertainty concerning protected areas (+9 points),” says the survey. The survey added that; “This year, Botswana dropped several places in the Investment Attractiveness Index and ranks 15th (out of 86).”
The report says despite the fact that Botswana dropped out of the top 10 ranking jurisdictions across the world, it managed to be the highest-ranked jurisdiction in Africa based on policy, ranking 4th (of 86) on the Policy Perception Index in 2023 followed by Morocco which ranked 12th (of 86) this year, climbing several spots from 17th (of 62) in 2022. South Africa’s policy score increased by almost 11 points. However, its position dropped somewhat and it ranks 64th out of 86 jurisdictions after ranking 53rd out of 62 in 2022.
The survey says Africa’s median score on the Investment Attractiveness Index decreased by a little over 9 points this year. With a median score of 44.88, Africa is the third least attractive region for mining investment when accounting for both mineral potential and policy, according to miners. However, Africa’s median PPI score increased by over 6 points in 2023. This year, Kenya, Liberia, Mauritania, Niger, Senegal, and Uganda received enough responses to be included in the report. Four African countries—Niger (84th), Mozambique (80th), Zimbabwe (78th), and Democratic Republic of Congo (77th)—ranked in the bottom 10 of the survey rankings this year based on policy. Furthermore, four African jurisdictions were ranked in the global bottom 10 based on their overall investment attractiveness scores: Niger (86th), Mozambique (82nd), Zimbabwe (81th), and Senegal (80th). Zimbabwe has been in the bottom 10 in the previous 10 editions of the mining survey.
A president of Producer Company with less than $50 million was quoted in the survey as saying that in Namibia, exploration companies are mandated to incorporate local ownership. Another exploration company manager was also quoted in the survey as saying that in Namibia, the proposed Investment Promotion Bill is heightening uncertainty and risk.
On Zimbabwe, citing a comment from a president of one of the exploration companies noted that, corruption surrounding permitting and other processes deter investment. With regard to South Africa, citing a president of a producer company worth more than US$50 million, the report says local community engagements and preferential procurement requirements lack clarity due to the absence of a cadastral system delineating the extent of location and area of influence of various communities. Another president of an exploration company was also quoted by the survey indicated that lack of transparency in permits is a deterrent to investment.
