Monday 5 March 2012

Copper and nickel refining - Botswana's dilemma

Mmegi: "These so-called resource nationalists argued that the old model of African growth which has basically remained unchanged since the 19th century cannot work. This model is based on the country exporting unprocessed raw materials - from ivory to diamonds to gold, all being sent down to the coast and exported to Asia and Europe where they are further processed.
In this model, the jobs and much of the value added disappeared and while Botswana got government revenue and temporary growth and prosperity, it did not get a fundamental transformation of its economy. The problem has always been that economics and trade law stacked up against those who try to give investors a reason to process those resources here in Botswana.
It took nearly 20 years of pushing for De Beers to finally shift its policy and become an advocate of diamond beneficiation in Botswana. For years people like former cabinet minister David Magang and Permanent Secretary Dr Akolang Tombale fought hard and paid a heavy price professionally in order to create a diamond beneficiation industry in Botswana."

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