Botswana Offers U.S. Mineral Access to Secure Tariff Relief

-*Proposal sparks debate over transparency, local interests, and long-term trade strategy

By Calistus Bosaletswe

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, a move that has sparked debate over economic strategy, transparency, and national interest.

There are fears that the negotiations that are surrounded with secrecy have potential to weaken local beneficiation, disrupt partnerships with firms like Debswana while others argue that the deal could shield Botswana from damaging tariffs.

The government on the other hand 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 where they submitted a proposal last month, 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 diamonds exports to U.S.

The government dangled the idea of granting 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 US. trade concerns for Botswana consideration.

Botswana suggested that, in the meantime Botswana will offer U.S priority access to critical minerals while waiting for framework detailing the specific trade concerns of the U.S.

The document further state 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 Center, streamlining permits and approvals. Botswana has also pledged to reduce non-tariff barriers and accept certain U.S. product standards to deepen trade relations, “state the document.

The proposal went further to explain that Botswana is willing to receive specific U.S. requests and concerns relating to both Non Trade Barriers (NTB) and trade facilitation to facilitate free movement of US 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 digitalization 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, «state the proposal.

Critics warn that the negotiations that have not been publicly debated or tabled before parliament could undermines 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 need for government to ensure legal compliance to avoid breaching the mineral rights or tribal land acts.

“Possibly, if access affects communal land or bypasses licensing procedures. The government should ensure legal compliance and involve affected communities,” said Suping. 

Suping argue 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 that critics raised such as transparency on the negotiations which were not tabled before parliament as a democratic norm and issues regarding beneficiation.

Ntsima dismissed the concerns as “speculative,” emphasizing that the government will not share any details about the negotiations due to non-disclosure agreement.

The government emphasized in a 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 unclear whether Washington will accept Botswana’s offer.

Ministry of Trade and Entrepreneurship, Permanent Secretary, Joel Ramaphoi declined to say if the recent reduction of U.S. tariffs from 37% to 15% 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 recently 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%, down from the previous rate of 37% announced on 2nd April 2025,” said Ramaphoi.

He emphasized that Botswana continue to engage U.S in a bid to further reduce or eliminate the 15% Reciprocal Tariffs.

Botswana Chamber of Mines Chief Executive Officer (CEO, Charles Siwawa posit that the  mineral policy of Botswana which came into effect in 2022 encourage domestic processing,value addition to raw materials instead of exporting raw minerals.

His position is that the mineral policy should cover issues around beneficiation when quizzed whether the move to grant U.S companies could lead to a loss of local beneficiation opportunities if raw materials are exported.

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 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 for zero tariffs between Botswana and the United States.

Botswana 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 export adds up to the country’s $500 million annual exports to U.S.

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.