Botswana is selling citizenship

Botswana, Africa's leading diamond producer, is fast-tracking plans to diversify its economy through a new Citizenship By Investment (CBI) programme announced in September 2025. The initiative comes as the southern African nation battles one of its worst economic downturns in recent years, driven by a global slump in the diamond market.

The economy contracted by 3% in 2024, with the decline deepening into 2025 as the Gross Domestic Product (GDP) fell by 5.3% year-on-year in the second quarter - the sharpest drop since 2020. The contraction has been directly linked to a severe crisis in the diamond sector, where rough diamond sales plummeted by over 40% in the first half of the year. On September 25, the state-owned Okavango Diamond Company (ODC) withdrew an entire 1 million-carat auction rather than sell at what it called "unsustainably low" prices.

The diamond industry, which contributes about a third of Botswana's government revenue, has been hit hard by a combination of global inflation, the collapse of China's housing market, and the rapid growth of lab-grown diamonds, which now command a growing share of the engagement ring market.

To mitigate the economic fallout, the government unveiled the Impact Investment Programme, the core of the upcoming CBI initiative. The scheme will require a minimum investment of between USD 75,000 and USD 90,000, making it one of the world's most affordable citizenship routes. It is expected to officially launch in early 2026.

The government has partnered with migration consultancy Arton Capital to design and manage the programme. While final application guidelines are yet to be published, investors will be directed toward key priority sectors such as luxury tourism, renewable energy, financial services, housing, and non-diamond mining.

Analysts say the diversification push is urgent. Fitch Solutions recently downgraded Botswana's credit rating to BBB with a negative outlook, while the fiscal deficit is projected to widen to 9.2% of GDP for the 2024/2025 financial year. Other traditional exports, including beef and livestock, have also suffered after a Foot-and-Mouth Disease (FMD) outbreak earlier in 2025 disrupted trade and triggered border closures.

The new CBI initiative, along with the establishment of a Sovereign Wealth Fund launched in September 2025, marks a decisive step in Botswana's broader economic transformation strategy. The government hopes these measures will attract new capital inflows, create jobs, and build a more resilient economy less dependent on diamonds.