Matambo renews PPADB boss contract

Botswana’s largest pension fund, Botswana Public Officers Pension Fund (BPOPF) has promised to set up a Fund that will invest 100 percent in infrastructure projects in Botswana.

Since the 2008 recession which crippled many economies, infrastructure development budgets have been adversely affected as governments fought to scale down the costs by balancing the budget.The Botswana government’ budget has over the years been focusing mainly on maintaining the existing infrastructure projects other than allocating new projects. Responding to BG questions this Wednesday, BPOPF Acting Chief Executive Officer, Lesedi Moakofhi said, the infrastructure fund will invest 100 percent in infrastructure projects in Botswana. “Before investing in the project, someone ought to conceptualise the project (usually known as a sponsor) and look for financiers.

Investors will then evaluate the project to determine if it meets their criteria. If it does then terms of investments are discussed and negotiated by the sponsor and the investor. If they agree, then the investment is made.” BPOPF which will also be tasked with appointing a manager to execute the function of the investor on its behalf said the process of appointing the manager is ongoing. “We expect that the infrastructure manager will be appointed in the first half of 2015,”said Moakofhi. BG is informed that the main objective of the infrastructure fund is to achieve a specific investment return which BPOPF would not disclose.

Another objective is to participate in driving the Botswana economy forward as infrastructure development has a direct impact on GDP growth. Moakofhi emphasised that as the largest pension fund in the country, the Board of Trustees of the BPOPF deemed it necessary for the BPOPF to have a meaningful impact in the development of the country. She added that, “The two avenues from an investment perspective that can have a direct impact on the development of the country are private equity investments and infrastructure development. For the period 2014- 2016 the Fund decided to use the two avenues to drive that objective of playing a significant role in Botswana.”