This article seeks to investigate the advantages and disadvantages of a beneficiation law for Botswana’s mining industry and its implications for foreign investment protection. It argues that the enactment of a beneficiation law could stimulate economic growth and development in Botswana. On a proper analysis of the potential of a beneficiation law it seems plain that it may facilitate the integration of, among other things, the cutting and polishing segments through facilitating backward and forward linkages in the entire diamond value chain. The objective would be to move Botswana’s diamond industry a step further as a new and emerging jewellery manufacturing and retail centre in order for it to derive maximum returns from rough diamond production. Quite clearly, the cutting and polishing of diamonds in Botswana is bound to promote employment, which in turn would promote a demand for goods and services that would have a positive impact on economic growth in the country. The authors conclude that, on balance, the opportunities to be accrued from the enactment of this law far outweigh the disadvantages and that beneficiation will not in any way scare investors away, as some have predicted it would.