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Lesotho looks beyond diamonds, sees future in rare earth elements

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Lesotho, whose economy depends on diamonds for over 20% of export earnings, is repositioning its mining strategy toward rare earth elements (REEs). Prime Minister Ntsokoane Samuel Matekane, speaking at the Africa Down Under 2025 conference in Perth, described REEs as the country’s “new jewels,” highlighting their presence in Lesotho’s coal deposits and their critical role in high-tech applications, renewable energy, and electric vehicle batteries.

Ntsokoane Samuel Matekane said “Diamonds will remain part of our crown . . . but our future crown will shine with new jewels: rare earths.”

The policy shift comes against a backdrop of structural pressures in the diamond sector. Global diamond prices remain at historic lows, demand is being reshaped by the rise of lab-grown diamonds, and mining companies are downsizing operations worldwide. In Lesotho, Gem Diamonds—the nation’s largest producer—reported a 42% revenue decline in H1 2025, triggering 240 job losses and raising the prospect of closing the Letseng mine four years ahead of schedule.

Matekane, who built much of his own wealth in diamonds, positioned diversification into critical minerals as both a strategic hedge and a growth opportunity. He extended an open call for international investors, joint ventures, and technology partnerships to accelerate exploration and development of REE projects. For Lesotho, success in this transition will hinge on mobilizing external capital, securing technical expertise, and building infrastructure to compete in the global critical minerals supply chain.

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DiamondBuzz

Botswana Looks Beyond Rough Diamond Sales, Eyes U.S. Jewelry Market

The Duty Exemption By US Presents An Opportunity For Domestic Jewelry Manufacturers In Gaborone To Bypass Traditional Middle-Market Hubs and Establish A Direct Pipeline To American Consumers

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Grappling with a painful downturn in global rough-diamond demand, Botswana is pivoting its economic strategy: expanding up the supply chain directly into American retail shelves while leveraging its resource wealth to fund conservation and diversification.

Speaking on the sidelines of New York Climate Week, Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, highlighted the southern African nation’s plan to capitalize on a 0% import-tariff rate to the U.S. market. The duty exemption presents an opportunity for domestic jewelry manufacturers in Gaborone to bypass traditional middle-market hubs and establish a direct pipeline to American consumers.

shift The push into value-added manufacturing comes as the world’s top diamond producer by value navigates a broader structural Diamond revenues have long formed the bedrock of Botswana’s post-independence balance sheet, underwriting universal secondary education and tuition-free university funding. However, recent market volatility has underscored the vulnerabilities of a mono-sectoral economy.

Under the Botswana Economic Transformation Programme (BETP)—an initiative spearheaded directly by President Duma Boko and his vice president—the government is directing resources toward manufacturing, agriculture, and broader mining sectors to reduce its heavy reliance on rough diamond sales.

To support its luxury exports, Botswana is recalibrating its brand narrative around origin, environmental stewardship, and social impact. The country recently announced a five-year extension of the “Okavango Eternal” partnership alongside De Beers Group and the National Geographic Society. The initiative aims to protect the ecological integrity of the Okavango River Basin while tying diamond purchases to conservation efforts.

With De Beers currently facing an impending ownership change, officials remain optimistic that any capital restructuring could bring additional funds into Botswana to accelerate its domestic economic transition.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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