BoB to formally approach govt on protecting Pula Fund

Central bank governor, Moses Pelaelo
Central bank governor, Moses Pelaelo

The Bank of Botswana is preparing a formal policy submission to the government on protecting the P46bn Pula Fund, the sovereign wealth fund housing the country’s savings from decades of budget surpluses and diamond revenues.

Set up in 1994 and managed by the BoB and global asset managers, the Pula Fund is designed to act as a fiscal buffer and nest egg for future generations who will live in an era without strong diamond revenues. 

However, the government often dips into the Pula Fund to fund various needs such as the Economic Stimulus Plan and budget shortfalls, while frequent withdrawals are also made to support the country’s import bill. The Pula Fund is part of the foreign reserves, representing long term assets, while other components cater for short and medium-term needs. 

Editor's Comment
A step in the right direction

That is indeed a welcome development, especially looking at the fact that the manual way of doing things is slowly disappearing and competency in the use of computers and other digital gadgets has become a must.The simple way of looking at it is just an example that almost all companies have gone completely digital and school leavers will be better placed after leaving school, because they will already be familiar with the use of computers.The...

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