Gaborone: Botswana has established a new sovereign wealth fund aimed at driving economic diversification, creating jobs, and improving the management of state-owned enterprises.
The move comes as the country faces economic challenges from a prolonged slump in the global diamond market, which has long been its main export. Unlike the older Pula Fund, which served mainly as a liquidity stabilisation mechanism, the new fund will focus on long-term growth and investment opportunities both locally and internationally.
Board chairperson Farouk Gumel explained that the fund would not only safeguard cash but also manage assets, including state firms that currently rely on government support. Deputy chair Emma Peloetletse added that only returns from investments would be drawn, ensuring the capital base remains intact.
With diamonds accounting for around 75% of exports and a third of fiscal revenue, Botswana hopes this new wealth fund will reduce dependence on diamonds, strengthen public finances, and foster sustainable economic growth.
