Paper short abstract:

This study investigates the drivers and obstacles of upgrading along Botswana diamond value chain. It maps the structure of diamond value chain, role of policy in upgrading activities and overlapping roles of state as a facilitator, regulator, producer, and buyer, in diamond value chain in Botswana.

Paper long abstract:

Natural resource extraction through mining, which is a key economic activity in resource-rich countries, is often associated with negative impacts on our ecosystems. To stimulate long-term growth, resource-rich countries have attempted to upgrade along value chains, by adding value and processing their natural resources to attain higher returns. Botswana has implemented policies which support the local beneficiation of diamonds as a pathway to stimulating economic diversification. This research draws on literature focusing on industrialization through commodities and the role of state in global value chains, to investigate the drivers and obstacles of upgrading along the diamond value chain in Botswana. Questions that emerge include, what is the scope of upgrading activities in Botswana’s diamond value chain? What is the role of the state in creating & shaping upgrading activities in Botswana’s diamond value chain, and how has this evolved overtime? This research is part of a PhD thesis which uses semi-structured interviews, document reviews and secondary statistical data to map out the structure of the diamond value chain in Botswana, the role of policy in upgrading activities and the overlapping roles of the state as a facilitator, regulator, producer, and buyer, in the diamond value chain. The presentation will use secondary data and statistics to assess the evolution, drivers, challenges, and pockets of success in Botswana’s diamond industry. This research contributes to literature on fostering policies that stimulate growth and economic diversification in resource-rich countries.