Botswana looks to diversify beyond diamonds with hemp and medical cannabis

Botswana, whose economy has long relied on diamonds, is at a crossroads. Under the leadership of President Duma Boko, the country has embarked on a plan to diversify its economy, with hemp and medical cannabis as key components.

This strategic shift aims to reduce dependence on a declining diamond industry, while addressing urgent issues such as unemployment and economic stagnation.

Diamonds on the Decline

For decades, diamonds have been Botswana’s economic lifeline, accounting for approximately 80% of its export revenue. However, revenue has fallen by more than 60% in recent years. In his inaugural State of the Nation address, President Boko emphasized the need for change: «The decline in diamond revenues is a clear signal that we can no longer depend on a single commodity.».

With an unemployment rate of 27% nationwide—and 38% among young people—the new administration has made diversification a priority. In addition to manufacturing, construction, and youth entrepreneurship, hemp and cannabis have been identified as sectors with high potential.

While the country has traditionally focused on drought-resistant crops such as sorghum and corn, hemp offers a lucrative alternative that aligns with global demand. The booming international market for medical cannabis also presents an opportunity to boost GDP and create much-needed jobs.

President Boko’s administration is also planning to harness renewable energy and develop the agricultural sector as part of broader economic transformation efforts. The cultivation of hemp and cannabis is expected to play a central role in these plans, provided that regulatory barriers are removed.

Cannabis in Botswana

The position of the Botswana on Cannabis remains conservative, with the cultivation, possession, and use of cannabis prohibited for both recreational and medical purposes. The cultivation of hemp, while legal, is strictly regulated, requiring official exemptions and close monitoring.

A landmark High Court ruling handed down in 2022, paved the way for a potential reform. The Court reinstated the exemption granted to a farmer for the cultivation and processing of industrial hemp for medical and industrial purposes, thereby highlighting the shortcomings of the current regulatory framework. This presents an opportunity for President Boko’s government to develop policies that align with international trends while addressing local economic needs.

Countries such as Zambia, Zimbabwe, South Africa and Lesotho have already adopted cannabis cultivation for medical or industrial purposes, thereby capitalizing on the plant's economic potential.