Botswana Sovereign Wealth Fund yet to deploy capital
The Botswana Sovereign Wealth Fund (BSWF) has not yet deployed capital either locally or internationally, Minister of State President, Defence and Security Moeti Mohwasa has confirmed.
Responding to questions in Parliament from Kgatleng East MP Mabuse Pule, Mohwasa said the delay stems from institutional and due-diligence processes common to sovereign wealth funds worldwide.
“Strong governance and institutional foundations must be built before committing capital,” he explained, noting that investment sourcing and evaluation typically take six to 18 months. Mohwasa said the Sovereign Wealth Fund setup phase includes: Operational and Organisational Development: The Fund has operated on an initial operational budget allocated by the Government of Botswana, disbursed in February 2026.
This funding has been directed into setting up physical infrastructure, recruiting key executive and support personnel (with core team structure completion currently at 50 percent), and establishing governance, risk management, financial management, and operational systems.
Investment Pipeline & Seed Capital: The BSWF team has actively begun identifying and evaluating a pipeline of potential investment opportunities. He said capital deployment will commence once seed capital is formally injected into the Fund.
In parallel, Government is progressing statutory legislation (the Sovereign Wealth Fund Act/Bill) to transition the Fund from its temporary setup structure into a standalone statutory sovereign wealth fund.
On legislative and policy framework he said core operational policies have been finalised and operationalised. However, the Investment Policy Statement (IPS) can only be crafted once the bill passes.
As a Public Interest Entity, the Fund is bound to prepare annual audited financial statements complying with International Financial Reporting Standards (IFRS), the Companies Act, and the Financial Reporting Act.
Further, the Fund’s inaugural audited financial statements will cover all operational activities since inception and are scheduled for completion by 30 November 2026.
Mohwasa highlighted that the Sovereign Wealth Fund is in line with the Global Governance Framework, being Santiago Principles Alignment. The Fund subscribes to the 24 Santiago Principles—the international benchmark for sovereign wealth fund governance, risk management, and accountability.
Compliance with these principles ensures operational independence, ethical investment practices, and financial stability.