BIHL laments shallow capital markets

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Botswana’s largest financial services company, BIHL says the shallowness of the local capital markets might result in its insurance subsidiary, Botswana Life Limited failing to offer retirement products in the future. This will largely be due to the absence of suitable investment instruments in the market.

In their 2013 annual report, BIHL announced that the acute shortage of Pula-based long-term matching assets for annuity liabilities is a cause for concern, which is becoming an increasingly critical challenge for the industry as a whole.

Through the annuity products, BIHL collects lump sum funds from pensioners, invests the money in long-term instruments and dispenses monthly payouts to beneficiaries.

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