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Botswana's New Mining Law Brings Challenges for Investors

Elena Perez Celis

Oct 21, 2024

Botswana’s new mining law, requiring foreign companies to sell 24% of their ownership to locals, reflects a growing trend across Africa aimed at increasing local control over natural resources. While this legislation can strengthen local economies, it also raises concerns for foreign investors who face potential compliance challenges, shareholder disputes, and corruption risks. Countries like South Africa and Ghana have similar local content laws, and such regulations often result in complex ownership structures that could lead to legal battles.

The increased focus on local content laws in Africa calls for more rigorous due diligence, compliance monitoring, and dispute resolution. This is where Africa Due Diligence (ADD™) can provide critical support. ADD™’s integrated platform offers solutions for businesses to navigate the evolving regulatory environment across the continent. With our expertise in compliance and due diligence, ADD™ can assist foreign investors and local stakeholders in meeting these new legal requirements, ensuring smoother business operations and minimizing the risk of disputes. Our platform connects stakeholders to verified partners and helps businesses align with local regulations, ultimately fostering more secure investments and long-term growth opportunities.

As more African nations adopt similar regulations, ADD™’s services will become invaluable for managing these complex transitions, offering tailored support for companies and investors seeking to enter or expand in African markets.

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