Pension funds beat PFR 2 target

Mbongeni Mguni | Saturday April 11, 2026 09:12

Bank of Botswana figures released recently indicate that assets held by the country’s pension funds reached P167.2 billion in December, with about P76 billion held domestically and the balance offshore.

Under NBFIRA’s amended investment rules, pension funds were required to hold a minimum of 44 percent of their assets within Botswana by the end of last year, rising to 47 percent by December 2026 and full compliance towards a total domestic investment limit of 50 percent by no later than December 2027.

Government believes the rules, known as PFR 2, will boost the local economy through redirecting assets back home, investing in local infrastructure and fostering the development of the capital market through innovation.

Meanwhile, central bank figures show that of the P167.2 billion in pension fund assets as at December, the bulk was held in offshore equities, followed by local equities and Botswana government bonds. In terms of performance, pension funds saw their greatest increase in the local Exchange Traded Funds category, where assets rose 108 percent during the year to P3.3 billion.

The offshore cash or near cash category rose from P10.9 billion to P13.3 billion during the year, while local equities closed the year just under a percent higher at P22.1 billion. Offshore equities ended 2025 roughly flat at P70 billion. Government will be particularly pleased to note strong gains in the Botswana-based property investments by pension funds.

The asset class, which includes local infrastructure, rose by more than 31 percent to close the year at P5.9 billion.