Botswana has broken into the top 10 of the Fraser Institute’s Investment Attractiveness Index (IAI) after being ranked the seventh-best mining jurisdiction in the world for the first time, according to a newly released report.
The country received the accolade from the Fraser Institute of Canada, which is consistently ranked as that country’s leading think tank and the world’s 14th most authoritative policy institute. Its Annual Survey of Mining Companies assessed how mineral endowments and public policy factors, such as taxation and regulatory uncertainty, affected exploration investment.
The IAI is a composite index constructed by combining the Policy Perception Index (PPI) and the Best Practices Mineral Potential Index (BPMPI). The BPMPI ranks jurisdictions according to whether a region’s geology encourages exploration investment or acts as a deterrent.
The institute constructed the overall IAI by combining the BPMPI with the PPI, which measures the effect of government policy on attitudes towards exploration investment.
The study established that Botswana’s IAI score increased by 12.25 points, improving its ranking from 20th out of 82 jurisdictions last year to seventh out of 68 in 2025. It noted that the improvement was driven by miners’ more positive perceptions of the country’s policies and mineral potential.
“On mineral potential, Botswana’s score rose by 10.12 points, with its ranking moving from 24th of 58 to 14th of 41. The PPI also increased by 15.45 points, which improved its ranking from 14th of 82 in 2024 to 2nd of 68 in 2025,” the report states.
On a different note, the study found that investors expressed growing concern over socio-economic agreements and uncertainty surrounding disputed land claims, while signalling greater comfort with the availability of infrastructure, skilled labour and security.
“Conversely, they showed the greatest drop in concern over the availability of skilled labour, infrastructure and security,” the study reveals.
It also observed that insights gathered from mining insiders showed that 40% of their investment decisions were based on policy factors. Botswana became the only African jurisdiction to break into the gilded collection of the world’s top 10 mining jurisdictions, most of which are in North America, Europe and Australia.
The report asserted that while mineral potential is a significant consideration in encouraging or dissuading mining investment, government policies can also play a major role. It noted that many regions across the globe have attractive geology and competitive policies, allowing exploration investment to be redirected away from jurisdictions with unattractive policies.
“While geologic and economic considerations are important factors in mineral exploration, a region’s policy climate is also an important investment consideration,” the report observed.
To reach its conclusions, the survey examined at least 15 policy factors affecting exploration, ranging from political stability and trade barriers to the quality of geological databases and infrastructure, among others.
The report also clarified that in many countries covered by the survey, provincial or state governments wielded significant authority over mining policy. This meant that policy environments were shaped more by subnational jurisdictions than by national governments. As a result, the survey removed national and regional analysis because provincial and state governments in many of the countries covered exercised significant authority over mining policy.
The study ranked Nevada in the United States as the most attractive jurisdiction for investment. Ontario and Saskatchewan in Canada took second and third place, respectively, while South Australia and Arizona occupied fifth and sixth positions. Botswana took seventh place, followed by Norway and Sweden, with Saudi Arabia completing the top 10.
In the same vein, Botswana propelled itself up the PPI rankings, moving from 14th position in 2024 to second place in 2025, signalling strong confidence in its mining policies.
On the other hand, the IAI ranked China as the least attractive jurisdiction in the world for mining investment, followed by Burkina Faso and Egypt. The Philippines, Mali, Chubut, Bolivia, Northern Ireland and Guinea were also among the bottom 10.
