Newscasts - REUTERS NEXT Interview with Botswana President Duma Gideon Boko 1

Botswana Minerals

25/01/2025 16:26

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Description: Reuters Editor-in-Chief Alessandra Galloni interviews Duma Gideon
Boko, President of Botswana.
Short Link: https://refini.tv/3E8XPXN

Video Transcript:

>> Hello, everyone. >> We are here today in Davos with a very special guest,
President Duma Gideon Boko of Botswana. Newly elected, was inaugurated on
November 7 of last year, so fresh in the job but already full of activity.
Thank you for joining us and welcome. >> Thank you very much. >> So you're
here in Davos, and you've been meeting with lots of investors, with lots of
companies. Can you give us a sense of what your pitch is for Botswana and what
the response has been? >> We are looking to power the economy of Botswana.
We're looking to diversify it, and we're looking at two areas. We're looking
at the green economy in which we are dealing with climate, smart agriculture.
We're dealing with ecotourism, also dealing with renewable energy. We're
looking also at the digital economy, and these are the areas that I've been
engaging with investors on, and there are huge opportunities in these areas.
On the digitalization, we're looking to deploy digital infrastructure, we are
looking to enable the country to reduce the amount of time it takes to get
services delivered to the people. Also looking to leverage on technology to
create efficiencies and save a lot of resources that go to waste. We're
looking to grow the economy from this sector, and in the process of so doing,
we are looking to bring as many of our young people into the mainstream
economy as possible, and we know for a fact that young people are natives of
the digital space. And so when we open up the space by making connectivity
available to them, we are enabling them then to become entrepreneurs. This is
what we're looking to do, and we're looking to grow the economy in a
sustainable and very robust manner. >> And can you give us a sense of the
responses that you had from specific investors from specific countries? >>
Well, we've received a lot of responses from European companies that want to
come into the energy space in the country. We've dealt with companies, for
instance, a company that is looking at diamond identification using some
technology that enables them to script on the actual diamond, however, small,
the provenance, the country from which it comes, so that when you take it and
the hologram will show that this is Botswana diamonds. These are some of the
very interesting innovations that technology is bringing and availing to us,
and we're excited to explore these. >> That diamond identification is very
interesting. Can you give us a sense of when a deal will be announced? >> We
hope soon. In my view, it should be by tomorrow. So we were hoping that that
gets done. >> Excellent. So you mentioned diamonds, and of course, Botswana's
economy is still reliant on diamonds. May I ask, when does the government plan
to sign the new diamond sales deal with De Beers? >> As I say, I'm hoping it
is tomorrow and I mean it literally. Yes. >> Are we to expect something
tomorrow? >> I hope it happens tomorrow. >> And what has been holding up the
finalization of the deal? >> Well, little bits and pieces here and there,
tying in all the loose ends. And on most of the issues we are in agreement, I
think it was just tidying up. Hopefully, we should get it over the line. >> A
lot of a lot of African countries are renegotiating deals with some of the
Western miners in general because they want a bigger share of mining revenues.
Give me your sense of where Botswana stands on this. Do you think that
Botswana is receiving a fair share of the profits from its diamond wealth
because it is a wealth or is there a better deal to be struck and what should
that be? >> Well, every party to any agreement is always looking to improve
their position to improve their take from the agreement, and it is to be
expected that Botswana and its partner will negotiate and try and reach some
sensible agreement that serves both parties. We've had a long partnership with
De Beers and we hope that that partnership continues into the future, and we
look forward to that happening. But in terms of the experience in other parts
of the world, it actually is an experience that speaks even to Botswana. We
need as countries that are reliant on mining to a great extent to begin to
deploy our energies and resources in beneficiation in country. This is
critical because it then enables the country to create jobs and to export
finished products. This we also are looking to do. We are diversifying within
mining, angling slightly into other minerals in the country we have, and we
want to beneficiate in relation to these minerals and create meaningful
sustainable jobs for our young people. >> Got it. Just to finish on De Beers,
I just want to make sure that we understand. So the De Beers deal that I was
referring to, you are hoping for an imminent signing. >> Absolutely. >>
Tomorrow? >> Absolutely. >> And in general, your balance, if you will, in
terms of the company and what the country is getting. You feel comfortable. >>
So far it has served us well. It has served us well. We hope that it continues
to serve the country well. >> And do you see yourself owning a bigger
shareholding then in De Beers? How are the conversations going on in that
front? >> Well, as I say, every party in an agreement is looking always to
improve its position. And the same goes for Botswana, we're looking to see if
we can get a bigger slice of De Beers, and that also is subject to a
negotiation with the partner that we have. >> And how is that going? Can you
give us a sense? >> I think it's going well. Negotiation is a function of
parties. Even if there are poles apart, they move towards each other and seek
to find each other somewhere. That's negotiation. If it is done in the utmost
good faith, it yields desirable and all satisfactory results for all the
parties involved. If any party walks away feeling hard done, then the
negotiation is not a good one. The deal is set to fail. But if everybody is
smiling and crying at the same time while walking from the negotiating table,
then you have yourself a good and durable deal, and that's what we hope to
achieve. >> Got it. So you mentioned two things. You mentioned youth and you
mentioned unemployment, and of course, unemployment is a problem. So what has
your pitch been on that or what is it that you're planning to do to bring down
the country's high unemployment? >> As I say, the digital space is the answer
for us, investment in renewable energy because it is the energy. And we have a
lot of potential in that regard. We have the best levels of irradiation in the
world. We have the sun all year round in Botswana. And so we are best placed
to harness solar energy and create data centers that we're able to power
fully. We're able to also go the direction of many grids across the breadth
and dimensions of the country, which will enable us not only to provide power
to households, but to ensure that those households become entrepreneurs and
that the power that they produce from their rooftops, then any excess thereof,
they can sell back to the grade. They're able to generate some income for
themselves. This creates activity, economic activity, and young people will
get absorbed and we will using technology, have them engaged also in precision
farming because they want things that excite them. The traditional ways of
farming would not be of any appeal to them. The charms and allurement lie in
the deployment of artificial intelligence to engage in predictive analytics,
to be able to look at the patterns, to look at the patterns of crop yields,
livestock diseases, to be able to give this information or share it with those
who are active in the space and through this, they are able to engage the
entrepreneurial energies and talents. >> AI is obviously a big topic here in
Davos. Do you have a sense of what the penetration of AI technology is both in
public sector and in private sector in Botswana? >> It's still very low right
now. We have bits of it in the police. They are deploying AI, for instance, in
crime detection, crime solving. We hope to deploy AI and this is how we look
at it. Some surveys that have been done in relation to police officers and
nurses have indicated that they spend about 60% of their time writing reports
and not doing the actual work of policing or attending to patients in the case
of nurses. What we will do then is augmentation using AI to ensure that we
free up the 60% of their time. So that it is then better utilized in the core
business or the core service that they have to render. This will create
efficiency. It will result in satisfaction of the population, and it will also
save on wastage. It's a huge opportunity, and it will raise the levels of
productivity. When you do that, you also raising revenue and you raised the
GDP. >> And so have you spoken to some of the AI companies here about coming
and helping with that process? >> Yes, we're in the process. We are doing
exactly that. >> Any deals? >> We will get deals. >> Tomorrow? >> We'll get
deals. No, maybe not tomorrow, but definitely soon. Some of them, we've
actually been in conversations with them before today, because we're looking
to deploy those in personal identification, passports, national ID cards, the
driver's licenses to make sure that these are issued in a split second or
minute and people can go about their business and be productive. >> So we
talked about diamonds. But obviously, there is some fiscal pressures that the
country is facing because there's been a bit of a depressed diamonds market.
There is a growing interest in copper mining. Is copper mining an alternative
to diamonds? >> Well, I'm not sure it can be described as an alternative, but
it is a promising and concrete source of revenue as are other minerals that
are found in Botswana there's iron ore, we have deposits of lithium, which we
are busy exploring. There are other minerals like niobium, which is useful in
manufacturing of batteries. Evidence that we've received indicates that we
could actually be one of the biggest. We have one of the biggest deposits of
niobium. Either after Brazil or ahead of Brazil. So we're looking to develop
some of these minerals and ensure that we position our economy for sustainable
development. >> So other big topic obviously here in Davos is obviously the
new American presidency. >> Yeah. >> What does the new Trump White House mean
for the African continent? >> Well, it means a number of things. I think if I
start off on a light and cheerful note, he engages in what we would regard as
robust diplomacy where people tell each other off when they feel others are
veering off course. This is something that has been missing in international
diplomacy, the ability to call things as we see them. He seems to have that
uncanny habit of calling things as he sees them, which is sometimes very good.
He then is able to apply pressure. The ceasefire in Gaza is an indication that
some phone call must have been made and it could only have been made by him, I
suspect. So we see that. But we also know because this is the second coming of
President Trump. That in his first coming, he was in relation to international
politics, he was for international peace world peace. He didn't start any
wars. He didn't continue any wars. In fact, he discontinued and withdrew
American forces from certain parts of the world. And so we hope that in the
same manner that he was able to deal with the situation in Gaza and between
the Palestinians and Israel, he will also prevail in relation to the Ukrainian
war and we will hopefully in the next few weeks months, see some resolution of
that conflict. That will assist rebuilding reconstruction efforts in Ukraine
and it will create a safer environment where trade can begin to be restored.
And we are looking for our part in the southern tip of Africa, we're looking
at developing our own infrastructure, trade infrastructure, corridors for the
movement of goods and services, and we are looking to do trade with the world,
and the United States will also play its part. In terms of what people think
is an ominous or ominous signs, I think we need to approach it with some
optimism, cautious, yes, but optimism in that President Trump is a business
person at heart. >> And so he examines situations, and certain of the
pronouncements that he has made should not be taken literally, in my humble
view. I think they should be taken seriously, but what we will see is that, he
will take pragmatic decisions. He will also be alive to the fact that this is
a second coming, and now he's got to create some legacy and it should be a
very good legacy for the United States and for the world. So it's a very
promising situation despite what people may say or think. >> So you're digging
a little deeper in what you said. I mean, the West is on the backfoot when it
comes to investment in general in Africa. And you were saying to me before
that you've spoken to some of the American companies here and some US
investors as well. So do you think that this is a moment where Western
investors, including US investors, can really come back and be a bigger player
in your country, but also in general? >> I think they have every reason to
come back. I think the world has always said that Africa is the next frontier.
I think that time for that frontier has come, and it presents immense
prospects, very young population, very huge market of about 1.4 billion
people. And what Africa is doing now with the Africa continental free trade
area agreement is to open up that vast market space to enable trade to
flourish, to reduce barriers, to remove trade protectionism on the breadth and
length of the African continent, and this can only be good for business. And
so we trust that America will also come in, because there's good money to be
made. There's progress to be powered and attained. And so they will want to be
part of that unfolding development. >> And you spoke about trade, and that if
I understand correctly, you're saying a better geopolitical situation will
have a trickle down effect on trade that will affect your country as well. Do
you not fear that tariffs, though, will eventually hurt African economies and
that basically the global South slips further down the agenda. It has happened
before in the Trump presidency. So is this not a concern and that actually
we're going to have less investment. >> You see, business works in sometimes
very simple and straightforward ways. The West has every reason to play its
part in Africa, because if it doesn't, there are others who will want to play
some part. We have China in the wings, and it's seeking as well with its Belt
and Road Initiative to exert influence on Africa. And so there's every reason
to have some countervailing presence, and that countervailing presence can
only come from the West. And the West is alive to this. I think they are
astute enough to realize that they can't seed the space. And when they come
into that space, it must be on fair and equitable terms, because that is what
Africa is demanding, and I think they are, as I say, astute to realize these
things. >> So that's your pitch. >> Absolutely. >> Come because you can
counter China. >> Come because you are needed here, we need you. We need to
create durable partnerships with you. We understand each other. We've worked
together. We've studied in your countries, and so there are these affinities
between us and the West. And there will be no vacuum here please, so please
step up. >> So you mentioned a vacuum, and that gets me to politics and
politics in general on the continent. There has been quite a lot of overhaul
of historic ruling parties in several African countries. We've seen that
lately. What does this say about African politics? What does it say about
young people? What do the young people want? And you can speak in your
country, what do these new voters want? And what is your response? What do
African leaders like you say to them? >> The young generation is not beholden
to some glorified and romanticized past, however, glorious that past may be.
Many of them were not born when some of these things were occurring, so they
are remote from them. What they want is high speed Internet, not today,
yesterday. What they want are jobs. They want opportunities. They want
improved livelihoods, and they want governments that deliver this with them on
board. And so the so-called liberation parties did the best they could to
liberate their countries. And the question is whether they have been able to
deliver the progress, the sustainable economic development that meets the
needs and demands of this youthful population. And it seems to me that many of
them have now outlived their welcome and their usefulness, and politics is
also evolving. The young people want to see many more young people take the
lead, and so they are looking to remove the old guard, and say to them, thank
you very much. You put your bodies on the line, but it's about time we now
took over and dealt with the future of which you will not be part, you will
not be there, so let us shape it. And so I think it's a good thing because it
also means that democracy is being entrenched on the African continent. If you
take the example of Botswana, a party that has been in power for 58 years,
totally unexpectedly, as they were doing their assessments, loses power. And
what do they do? They accept the outcome. In a continent where such is always
an aberration, they accept the outcome. They graciously hand over power. And
it's seamless, it is orderly, it is peaceful, and it is a living example that
herself as Botswana claimed to be a beacon of democracy on the African
continent, and we hope that many others will learn. I mean, countries like
Mozambique where there's strife, it's sometimes a function of lack of
credibility in the institutions that run the country and run society,
especially election management bodies. >> Great. Well, to end, since this is a
financial audience watching, give us some numbers to end. So what is growth
going to be this year? What do you hope unemployment will be this year? And
give me a number of new investors that you hope to come in? Rattle off some
numbers. >> When you've been engaging in conversations that are ongoing and
developing, it's very difficult to give the numbers, but I can tell you that
unemployment is now sitting at 27% in Botswana. The majority of these are
young people because they comprise 60% of the population. The median age in
Botswana is 25. So we have a challenge in our hands, but we also have
opportunities. We need to grow our economy. We've had growth over the years,
sometimes going up to 6, 7%. >> This year, what will it be? >> This year it's
quite low. I think at the very best, probably be about 2.5-3%. >> And next
year projection? >> And we expect it to rise because certain of these
interventions will now kick in. But it's been jobless growth that we've had,
even at the best of times. So we want growth that generates meaningful jobs,
especially for women and young people. So it has to be inclusive, and it also
has to be equal and equitable. So we're looking to achieve these levels,
hopefully. >> Great. You have to promise me next year, we meet here again, and
we'll do a recap. >> Definitely. And I'm sure I'll have some pretty impressive
statistics to give to you then. >> Great. >> Thank you very much. >> Thank you
very much, Mr. President. Thank you