The government has defended its decision to house the Botswana Sovereign Wealth Fund (BSWF) under the Office of the President, arguing that the fund’s broad developmental mandate requires coordination at the highest level of government.
Responding to a question from Maun North MP Dumelang Saleshando, Assistant Minister for State President, Defence and Security Maipelo Mophuting said the fund was not designed as a conventional pool of cash. She said it was designed as a hybrid asset management vehicle incorporating both financial and non-financial state assets.
“The fund is not only a cash pool, but also an asset management entity that will capture state owned entities owned and or managed by various ministries,” Mophuting told Parliament. “The diverse nature of its cash and non cash portfolio means it will require the convening power of the Presidency to truly execute its mandate.”
Saleshando had questioned why the BSWF was not placed under the Ministry of Finance, which traditionally oversees national investment portfolios and has established technical capacity in financial management.
Saleshando had questioned why the BSWF was not placed under the Ministry of Finance, which traditionally oversees national investment portfolios and has established technical capacity in financial management.
Mophuting said the decision was “a deliberate strategic choice”, aligning the fund with other central coordinating bodies such as the National Planning Commission. She cited Section 50(4) of the Constitution and the Public Authorities (Functions) Act, which empower the President to assign governmental responsibilities in the public interest.
The government also sought to reassure Parliament on governance, saying the board of the BSWF was constituted in line with the Companies Act and international best practice.
According to Mophuting, board appointments were guided by the Santiago Principles, a globally recognised framework for sovereign wealth fund governance, with an emphasis on merit, transparency and professional competence.
The inaugural board includes a mix of international and local figures, among them the former chair of Nigeria’s sovereign wealth fund, a former United States representative on the International Monetary Fund board, and a development finance specialist. Locally, members include the governor of the Bank of Botswana, the President’s legal adviser, senior public service leadership, and private sector representatives, including from De Beers.
“This means we have been able to tap African and global experience and expertise to set up our fund,” Mophuting said.
The CEO was selected based on prior experience managing one of Botswana’s largest institutional funds, with the government arguing that proven ability to “protect, preserve and grow” pension assets translates into capacity to manage a sovereign fund.
The appointment of the fund’s chief executive officer followed what the ministry described as a “rigorous recruitment process” aligned with global governance and investment principles.
The CEO was selected based on prior experience managing one of Botswana’s largest institutional funds, with the government arguing that proven ability to “protect, preserve and grow” pension assets translates into capacity to manage a sovereign fund.
Mophuting added that the appointee underwent an induction programme involving the African Sovereign Wealth Fund Forum and other international partners.
Despite the institutional framework being put in place, the BSWF remains in its early stages, with no substantial capital yet committed.
Mophuting confirmed that initial funding is still being sourced and will rely heavily on the transfer of underperforming state owned enterprises rather than direct cash injections.
“The initial portfolio is not comprised entirely of liquid cash; it includes the transfer of underperforming state owned entities as assets in kind,” she said.
Future capitalisation is expected to follow a three pronged approach: ring fenced mineral revenues, particularly from diamonds, dividends from restructured state owned enterprises, and reinvested returns on investment. The International Monetary Fund has advised that sustained fiscal surpluses will be necessary to build meaningful savings.
The fund has been established as a company under the Companies Act, registered in 2025 as the Botswana Sovereign Wealth Fund Limited.
