Pension funds back economic shift :: Mmegi Online

Botswana’s pension funds are being rallied to channel more of their assets into the domestic economy, as policymakers and industry leaders warn that the country’s next phase of growth will depend on how effectively retirement savings are mobilised for development.

The country's pension funds, valued at over P166 billion, have been eyed by policymakers as a possible driver of economic growth if channelled to domestic assets to support the country's economic plans. Recently, during the Botswana Pensions Society (BPS) Annual Congress, policymakers reiterated this notion, highlighting the imperative role pension funds can play in unlocking economic diversification.

Delivering remarks on behalf of the Vice President and Minister of Finance, Permanent Secretary Gape Kaboyakgosi said Botswana’s economic model is at a turning point. Whilst the diamond-led growth model has delivered stability for decades, he said diversification has slowed, with unemployment and inequality rising, making it urgent for the country's diversification drive to find alternative financing models.

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