Pension Funds Key to Botswana Development Goals

STAFF WRITER | Friday March 20, 2026 09:19

 

This emerged during the 2026 Botswana Pensions Society (BPS) Annual Conference, held from March 12–13 at the Majestic Five Hotel in Palapye, where policymakers, regulators and pension industry leaders gathered to examine the growing role of retirement savings in national development.

This year’s edition of the Conference was held under the theme “Beyond Returns: Leveraging Pension Capital for National Development and Secure Retirement Communities.”

Speaking at the Conference, Permanent Secretary to the Vice President Dr Gape Kaboyakgosi said pension capital should increasingly be viewed as a strategic national resource capable of supporting Botswana’s long-term development goals.

“The assets that have been built and entrusted to pension funds must secure the future of members while also supporting national development priorities,” Kaboyakgosi said. He explained that long-term domestic capital is becoming increasingly valuable in a global financial environment where investment flows are more selective and require policy certainty, sound governance and innovation.

According to Kaboyakgosi, Botswana’s infrastructure, digital systems and productive sectors require patient capital capable of sustaining long-term investment horizons—an area where pension funds can play a significant role. He said the discussions at the Conference align closely with Botswana’s broader economic transformation agenda, particularly efforts to accelerate diversification and strengthen the country’s competitiveness. While Botswana’s diamond-driven growth model helped build strong economic institutions and improve living standards over several decades, Kaboyakgosi acknowledged that the model is now facing new pressures.

He noted that economic diversification has slowed in recent years while challenges such as unemployment, inequality and poverty continue to persist.

“To sustain inclusive growth, we must deepen and broaden our economic base,” he said, adding that collaboration between government and the private sector will be critical in financing the country’s transformation agenda. BPS chairperson Tsholofelo Mosimanewapula, said pension funds must balance two important responsibilities, protecting members’ retirement savings while also contributing to national development.

She said pension assets represent the long-term security, dignity and wellbeing of members, but can also serve as powerful instruments for economic growth when guided by sound governance and responsible investment.

Mosimanewapula said the Conference provides a platform for industry leaders to explore innovative ways of leveraging pension capital while ensuring retirement systems remain sustainable and secure.

The conference also heard from Dr Alfred Ouma Shem, Head of the Secretariat of the Africa Pension Supervisors Association, who highlighted the growing importance of pension capital across the African continent. Shem said pension systems play a fundamental role in mitigating old-age poverty by enabling workers to save during their productive years and maintain financial security in retirement.

However, he noted that pension coverage across Africa remains among the lowest globally, largely because many workers operate within informal sectors that are not covered by traditional pension arrangements.

In some African countries, he said, up to 85 percent of workers are employed in the informal sector, making it difficult for them to access retirement savings systems.

“The pension systems we inherited were designed primarily for formal employment,” Shem said. “This leaves a large portion of the workforce without retirement protection.”

He said African regulators are increasingly exploring innovative pension schemes that can accommodate informal sector workers and expand coverage. Shem also warned that rising life expectancy across the continent will place increasing pressure on pension systems.

With retirees expected to live an average of about 17 years after retirement, he said pension systems must ensure adequate income to support individuals throughout their later years.

“Pension capital is a strategic national asset,” he said, adding that well-governed pension systems can support infrastructure development, strengthen national savings and contribute to sustainable economic growth.

Discussions at the Conference are also focusing on regulatory developments, financial literacy, responsible investment practices, risk management and the role of technology in improving efficiency and transparency in pension administration.

Industry leaders say these discussions are critical as Botswana and other African countries seek to harness pension capital not only for financial returns but also to support long-term national development while ensuring secure retirement communities for citizens.