Released last week, the survey captures the views of 180 mining executives around the world who rank jurisdictions – including regions and countries – according to policy areas which collectively determine the attractiveness of setting up and operating mining ventures in the countries and jurisdictions.
Although Botswana has generally topped the Fraser survey in Africa over the 25 years of its existence, the country first lost ground to Namibia in 2015 and in 2021, was elbowed completely out of the top 10 by Morocco, Ghana, Liberia and others.
Botswana was ranked 66 out of 84 surveyed countries in 2021, with investors expressing uncertainty concerning protected areas, political stability, labour regulations, employment conditions and the taxation regime.
At the time, the Botswana Chamber of Mines said the results were clouded by the COVID-19 pandemic, which had dulled the country’s investment allure.
In the latest survey which covers 2022, however, Botswana rose to 10th out of the 62 surveyed countries, and first among the African nations included in the review. On policy, Botswana was the highest ranked in Africa and the second-highest in the world, Fraser researchers said.
“Botswana’s increase in its policy perception score reflects decreased concerns over uncertainty concerning protected areas, infrastructure, political stability, labour regulations and employment agreements,” the survey reads.
“Botswana is also the most attractive jurisdiction in Africa and top 10 in the world when considering both policy and mineral potential, ranking 10th out of 62 in overall investment attractiveness.”
Researchers also found that except for Botswana, policy scores decreased in all African jurisdictions that were featured in the 2021 and 2022 reports.
Africa’s second-best performer in the survey, Morocco, actually dropped out of the global top 10 in the latest edition of the survey. At the same time, South Africa, the continent’s most industrialised nation, received harsh feedback from respondents.
“South Africa decreased its policy score by 20 points and ranks 53rd out of 62 jurisdictions,” the researchers reported. “Investors expressed increased concern over the availability of labour skills and infrastructure. “Moreover, respondents indicated that regulatory duplication and uncertainty concerning the administration and enforcement of existing regulations continue to be a deterrent to investment.”
Government’s introduction of a mining cadastre system last year is expected to contribute significantly to Botswana’s dominance in future editions of the Fraser survey.
The Ministry of Minerals and Energy launched the mining cadastre last November, giving minerals investors real-time access to geological information about the country’s minerals resources. Through the system, which also simplifies the minerals licensing and permitting system in the country, Botswana became one of a handful of countries operating a real-time mining cadastre portal.
At a briefing last October, the Minerals and Energy minister, Lefoko Moagi told journalists that the new digital mineral rights system would enhance the ease of access by explorers and potentially lead to greater unlocking of value from the country’s mineral resources.
“We have to employ our systems such as online portals so that investors have this information at their fingertips,” he said. “They need to access this information way before they make invasive efforts to see what’s below the ground. “This system will extend our outreach beyond the borders and help boost minerals prospecting activity. “Information coming out of exploration activities can be easily accessed anywhere in the world and people such as minerals explorers, scholars, farmers and others, can find it for themselves.”
