Africa-Press – Botswana. As of the end of 2024, the local pensions were worth P152.3 billion, of which P64.6 billion has been allocated for local investment, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has reported.
Speaking during the 2025 Botswana Pension Society Annual Conference held in Kasane, Mr Alan Ranthepa, a board member of the Botswana Pension Society, noted that pension funds had successfully exceeded the 41 per cent local investment threshold established by regulators for the year 2024.
Specifically, he highlighted that the Botswana Public Officers Pension Fund (BPOPF) had invested 42 per cent above the benchmark set by NBFIRA, contributing positively to the overall performance of local pension funds in meeting the specified target.
Mr Ranthepa acknowledged that previously, pension funds had the flexibility to invest more heavily in offshore markets, which typically yield higher profits.
However, the new pension fund rules have shifted the focus, requiring a balanced investment strategy with equal emphasis on local and offshore markets, aiming for a 50 per cent allocation to each.
Recognising the challenges posed by the new policy, Mr Ranthepa mentioned that the limited number of high-return investment instruments domestically could hinder the influx of capital into Botswana.
This reflects the relatively illiquid nature of local markets, making it essential for pension funds to navigate these limitations effectively.
To achieve the ambitious 50 per cent target by 2027, the regulator has implemented annual thresholds, which Mr Ranthepa believes would be attainable for pension funds.
He emphasised the critical role of fund managers in evaluating investment opportunities, as increased local fund allocation aligns with Botswana’s developmental goals.
Reiterating the commitment to prudent investment practices, Mr Ranthepa assured that thorough diligence processes would be followed to maximise returns and promote economic growth.
The emphasis on local investments is seen as a crucial step toward enhancing Botswana’s economic landscape and ensuring that pension funds contribute meaningfully to national development.
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