The country’s pension funds held 42.6% of their assets domestically as at November, or P64.4 billion, comfortably above NBFIRA's target of 41%, central bank data shows.
Bank of Botswana (BoB) figures show that by November, the pension funds held total assets of P151.3 billion.
Under the updated Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Pension Fund Rules, local pension funds are required to gradually increase the proportion of domestic assets to 50% in the years to December 2027. The target for December 2024 was 41% and will move to 44% by December 2025.
The central bank figures also show that the value of pension fund assets grew by nearly eight percent in the year to November. According to the BoB’s figures, as at November, the biggest asset class for pension funds was offshore equities in which P67.8 billion was invested, or about 45% of total assets.
Local equities accounted for just over 14% of total assets, whilst government bonds represented nearly 11% of assets. In January, offshore equities were 47% of total pension fund assets, whilst local equities accounted for about 16% and government bonds represented 11%. During the year, pension funds appear to have ploughed more of their assets into pula cash holdings and offshore bonds, according to BoB figures.
Under the updated Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Pension Fund Rules, local pension funds are required to gradually increase the proportion of domestic assets to 50% in the years to December 2027. The target for December 2024 was 41% and will move to 44% by December 2025.
The central bank figures also show that the value of pension fund assets grew by nearly eight percent in the year to November. According to the BoB’s figures, as at November, the biggest asset class for pension funds was offshore equities in which P67.8 billion was invested, or about 45% of total assets.
Local equities accounted for just over 14% of total assets, whilst government bonds represented nearly 11% of assets. In January, offshore equities were 47% of total pension fund assets, whilst local equities accounted for about 16% and government bonds represented 11%. During the year, pension funds appear to have ploughed more of their assets into pula cash holdings and offshore bonds, according to BoB figures.
