ABSA Bank Botswana pushes mining riches into citizen hands
ABSA Bank Botswana Managing Director, Keabetswe Pheko-Moshagane, has expressed delight for the bank’s support of the mining industry’s transformation towards a more inclusive, citizen focused future.
Speaking at the inaugural Botswana Mining Show in Gaborone on Tuesday, Pheko-Moshagane said it is imperative to move from a model where communities are passive observers of mining activity, to one where they are active stakeholders through equity, procurement, employment and entrepreneurship.
Over the years, she noted, a new wave of investment models, have emerged to drive greater citizen participation and local value creation, and ABSA has been a part of that shift.
Through its partnership with Debswana, ABSA Bank Botswana has disbursed over P 1.5 billion to their contractors from 2020, with more than P700 million advanced to citizen suppliers.
Furthermore, the bank has helped structure financing and mentoring schemes for citizen-owned companies for about 3,000 local businesses.
“We believe that citizen participation is a cornerstone of the new economic model emerging in the mining sector. It defines how value is created, shared, and sustained,” she said and noted that this reflects the bank’s belief that behind every business, community, and economy, there is a story of people. “Ultimately, our efforts reflect a simple conviction that finance must go hand in hand with the new financing model, one that drives inclusion, sustainability, and shared prosperity for us all,” she added.
The ABSA MD urged the financial sector to align with frameworks that promote diversification mining, such as local procurement and supplier development, compulsory community development trust funded by 1-3% after-tax profits or royalties, and co-investment schemes such as a proposed citizen mining investment fund led by BITC.
She emphasised that Botswana stands at a critical juncture in its economic journey with the diamond sector which has been the backbone of national prosperity, now showing structural strain.
In the second quarter of 2025, the diamond production contracted by 43%, exposing the risk of relying on a single commodity.
In his keynote address, Minister of State President, Moeti Mohwasa further buttressed the need for a reset.
“Our task is to ensure that every ounce of mineral extracted from Botswana translates into jobs for our people, technology transfer for our youth, enterprise opportunities for our citizens, and sustainable revenue for our nation. Furthermore, we are expanding the Small-Scale Mining Framework to unlock opportunities for artisanal miners and small enterprises, Mohwasa said, further noting that government is promoting local content frameworks to enhance citizen participation in procurement, supply chains, and service provision. “We are encouraging joint ventures and strategic partnerships between Batswana-owned enterprises and international investors to facilitate skills transfer and enterprise development,” he said.
The Minister also noted that the forthcoming review of the Mines and Minerals Act seeks to strengthen citizen participation in the sector, institutionalise local beneficiation and streamline licensing.
The mining sector – which currently accounts for 11.9% of the GDP, has been on a declining trajectory post Covid-19, with the ripple effects felt across closely related sectors.
Given that minerals historically contributed 30 to 40% of government revenues and diamonds contributing over 80% of foreign exchange earnings, this downturn now poses a broader national challenge.
