The value of the country’s pension fund assets jumped to P158.2 billion in June, an increase of nearly P7 billion from May, benefiting from an upswing in both local and international markets.
Bank of Botswana figures show that between January and June, the value of the pension funds rose by less than three percent due to a sharp drop recorded in March when the figures sank to P145.9 billion from P152.7 billion in Feb. The decrease was associated with government’s direct access to a P3 billion loan from the Botswana Public Officers Pension Fund (BPOPF), approved on March 13.
However, apart from that temporary drop, the pension funds enjoyed a rosy half year performance, powered mainly by steady equities and an uptick in government bonds. In equities, while the Botswana Stock Exchange gained about 3.5% between January and June 30, individual counters on the platform reported strong share price performances linked to both their financial performances as well a trend of warming asset prices in the local equities market, stretching back to last year.
On the fixed income assets, between January and June, pension fund assets held in government bonds rose from P16.9 billion to P21.7 billion, reflecting the higher issuance of debt-seeking notes by government, as the prolonged diamond downturn eroded traditional revenue lines. As at June, the pension funds held 45% of their assets domestically, ahead of the 44% target mandated by NBFIRA to be reached by December 2025.
The regulator requires pension funds to reach 47% domestic investment by December 2026 and achieve full compliance of a minimum of 50% by December 2027.
