In a step towards securing stability for future generations, Botswana has officially established a Sovereign Wealth Fund (SWF).
The Fund is designed to provide long-term economic stability, create jobs, and ensure that wealth from the nation’s resources continues to benefit generations to come.
During a press briefing earlier today, the Fund’s inaugural chairperson, Farouk Gumel, revealed that the SWF ‘s first board meeting had taken place, following its inauguration by President Duma Boko.
According to Gumel, the sovereign wealth fund will act as a buffer during economic downturns, stabilise government finances, and support essential social programmes without resorting to excessive borrowing.
He also emphasised the strength of the board’s composition, which brings together a wide range of expertise.
“Our background is very diverse as a board, and I believe this mixture of experiences is what makes us stand out compared to other sovereign wealth funds. “We have members with experience in multilateral agencies, former IMF board members, leaders in development finance, executives from the Afreximbank, and senior figures from the diamond industry,” Gumel shared.
Meanwhile, the Fund’s deputy chair, Permanent Secretary to the President, Emma Peloetletse, noted that some state-owned entities will fall under the mandate of the new SWF and will undergo restructuring to boost profitability, efficiency, and job creation.
She further explained how the new fund differs from Botswana’s well-known Pula Fund.
“The Botswana Sovereign Wealth Fund is 100 percent government-owned and operates independently. “At present, we are building the Fund’s structures and will soon develop strategies and opportunities that guide us forward,” she said.
The newly inaugurated board members are:
Farouk Gumel
Emmah Peloetletse
Anil Dua
Lesego Moseki
Malebogo Mpungwa
Sunil Sabharwal
Boingotlo Toteng
