Africa-Press – Botswana. ABSA Botswana has initiated a dialogue aimed at encouraging the private sector and various development entities to explore the utilisation of Pension Funds for infrastructure development.
This initiative is crucial for fostering sustainable growth and overall economic advancement in the country. Vice President also Minister of Finance, Mr Ndaba Gaolathe, emphasised the importance of pension funds, stating that they symbolised more than just savings; they represented the aspirations of citizens who dedicated themselves to public service, including teachers, nurses, and engineers.
“These individuals deserve a return on their investments that is both secure and transformative,” he said.
Officiating at the dialogue under the theme, “Leveraging Pension Funds for Infrastructure Development, Fostering Economic Growth, and Creating Long-Term Value for Beneficiaries,” recently in Gaborone, Mr Gaolathe described the theme as a blueprint for a new development compact that affirms dignity, restores agency, and unlocks the untapped potential within Botswana’s borders.
“It is time for Botswana to unlock the domestic capital, to use it as a lever for inclusive infrastructure development and to shift from dependence to dominion, from passivity to purpose,” he stated.
Mr Gaolathe cited the Canada Pension Plan Investment Board (CPPIB) as a global benchmark in utilising pension funds for nation-building, highlighting that CPPIB focused on core infrastructure investments domestically before venturing into global opportunities.
He envisioned a future where Botswana’s pension funds would be invested courageously and with foresight, specifically in areas such as affordable housing and renewable energy infrastructure.
“Botswana’s journey to developed status will not be reliant on external donors; it will be forged by our ingenuity and the hard work of our investors, workers, pensioners, engineers, and planners,” Mr Gaolathe said.
ABSA Bank Botswana’s Managing Director, Ms Pheko-Moshagane, echoed Ma Gaolathe’s sentiments, articulating that the dialogue’s purpose was to explore the potential of leveraging pension funds for infrastructure development, economic growth, and creating long-term value for beneficiaries. She underscored the significance of infrastructure as the backbone of any economy, fostering industrial development and connecting communities.
“Pension funds are not merely savings for retirement; they represent a significant lever for nation-building and long-term economic growth,” she noted.
Ms Pheko-Moshagane emphasised the need for collaboration to turn the vision of infrastructure development into a reality, stating that Africa faces an infrastructure gap requiring innovative financial solutions.
Reflecting on ABSA’s commitment to national priorities, Ms Pheko-Moshagane pointed out that the bank contributed P407 million to national fiscals in 2024, showcasing its role as a responsible corporate citizen focused on socio-economic development.
In recent years, ABSA’s contribution to infrastructure development has seen a significant increase, having disbursed over P2.5 billion to the business community for infrastructure projects. This effort has enabled local entrepreneurs to actively participate in building the nation’s framework for growth.
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