Alternative investments in Botswana: Building a future beyond tradition :: Mmegi Online

Botswana’s investment space for an average pension fund has historically been anchored in traditional asset classes, including listed equities, fixed income (bonds and cash), and local property. These investments have provided stability and predictable returns. However, with the introduction of the Pension Fund Investment Rules, 2023 (PFR2, 2023), the local investment landscape is undergoing a significant transformation.

Botswana institutional investors are regulated by NBFIRA and deploy investments within the limits on Pension Fund Rules 2 (PFR2). The updated rules introduce new allocation limits and timelines for repatriating offshore funds.

The initial PFR2 limited pension funds to investing not more than 70% of their capital offshore, while the revised version mandates a minimum domestic investment threshold of 50% to be implemented in a phased manner and to be completed no later than December 2027. The aim is to support sustainable domestic economic development by channelling pension capital into local capital markets and reducing over-reliance on international markets for returns.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

Alternative investments in Botswana: Building a future beyond tradition

Explore

More

High loan costs force Batswana to shelve borrowing

Debswana, Boteti District Council boost food security

Selefu

Xpress Batteries expands beyond South Africa with first Botswana store

Lands Ministry accused of defying Boko's Bonno project

Gov't, unions deadlocked on per diem talks

Court rejects bid to jail gov't officials for contempt

Passenger, 75, dies in crash en route to funeral

Public servants deserve better than union infighting