What the $12 Billion deal is about

Qatar invests in Botswana

Author

Boago Sephutho
August 29, 2025

Good morning 😃🌞☀️ let’s get into it.

Botswana has signed a historic $12 billion investment deal with Qatar’s Al Mansour Holdings, led by Sheikh Mansour Bin Jabor Bin Jassim Al Thani of the Qatari royal family. The agreement, finalized in partnership with the Botswana Development Corporation (BDC), represents one of the largest single foreign investments in the country’s history.

What the Deal Covers

The funds will be directed toward multiple high-impact sectors:

  • Infrastructure: Roads, digital networks, and transport links.

  • Energy: Both renewable and conventional power generation.

  • Mining & Diamond Refinement: Supporting Botswana’s beneficiation agenda.

  • Agriculture: Modernizing and scaling food production.

  • Tourism: Enhancing the sector as a driver of economic growth.

  • Cybersecurity & Defense: Strengthening national resilience in emerging security areas.

Why It Matters

Botswana’s economy has long depended on diamonds, but a downturn in global demand saw GDP contract by 3% in 2024, with further pressure expected in 2025. This investment comes at a critical moment, aiming to:

  • Cushion the diamond slump by diversifying the economy.

  • Create new jobs through infrastructure, energy, and agribusiness projects.

  • Stimulate opportunities for entrepreneurs and small businesses feeding into supply chains.

  • Position Botswana as a regional hub for investment under the African Continental Free Trade Area (AfCFTA).

A Strategic Shift

The deal also signals Botswana’s intent to broaden its global partnerships. Instead of relying only on traditional Western or Chinese investors, the country is deepening ties with the Gulf region. Notably, Qatar’s Al Mansour Holdings has also committed $19 billion in Zambia, highlighting Southern Africa as a key growth frontier for Gulf investors.

The Road Ahead

The success of this agreement will depend on:

  • Implementation: Ensuring projects move from signed papers to visible development.

  • Governance: Managing funds transparently and aligning projects with national priorities.

  • Inclusion: Making sure local entrepreneurs and SMEs benefit from the ripple effects of this capital injection.

President Duma Boko called the deal “historic” and emphasized its role in tackling Botswana’s immediate economic challenges while setting a foundation for long-term growth. If executed well, the investment could mark a turning point in Botswana’s journey toward economic diversification.

Sources:

Of course — here are the main reliable sources that reported on the $12 billion Qatar–Botswana deal: