NBFIRA�s proposal stifles domestic capital markets � PwC

A proposed horizon to 2050 for local fund managers to scale down offshore investments to a ceiling of 30 percent has the potential to stifle development of domestic capital markets, economic analysts say.

Due to a thin local capital market, regulators currently allow fund managers to invest up to 70 percent of their funds offshore. The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) however, hopes to change the law to 70% domestic and 30% offshore by 2050.

In a research report titled, Africa Asset Management 2020, accounting firm PwC said on the back of a stable political environment and a solid regulatory framework, Botswana’s financial sector seems to be well set for growth. However, the report contends that the long timeline under NBFIRA’s proposal coupled with a high wealth distribution inequality in Botswana are two factors that could frustrate the development of the local capital markets.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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