Mophuting defends Sovereign Wealth Fund OP placement

The Assistant Minister for State President, Defence and Security, Maipelo Mophuting, has defended the government’s decision to place the Botswana Sovereign Wealth Fund (BSWF) under the Office of the President, saying the Fund’s broad developmental mandate requires centralised oversight.Responding to a parliamentary question, Mophuting said the (BSWF) is not merely a financial reserve but an asset management entity that will incorporate both cash and non-cash holdings, including state-owned enterprises(SOEs) from various ministries.As such, she argued that the Fund requires the “convening power of the Presidency” to coordinate effectively across government.She explained that while a purely cash-based fund would typically fall under the Ministry of Finance, the hybrid structure of the BSWF justifies its placement within the Ministry of State President, Defence and Security.She added that the decision aligns with constitutional provisions allowing the President to assign responsibilities, as well as the Public Authorities (Functions) Act, which permits the delegation of functions in the public interest.Mophuting noted that the arrangement mirrors other key development entities such as the National Planning Commission and the Public-Private Partnership Unit, which are also housed under the Office of the President to ensure coordination.On governance, she said the Board of Directors was selected in accordance with Part X of the Companies Act, guided by principles of merit, transparency and professional competency, as well as international best practices under the Santiago Principles. The board includes a mix of international and local expertise, including the immediate past chairperson of Nigeria’s sovereign wealth fund, a former United States representative to the InternationalMonetary Fund Board, and a global development finance expert.Locally, members include the Governor of the Bank of Botswana, the Presidential legal advisor, senior public service leadership, and private sector representatives, including from De Beers.Regarding executive leadership, Mophuting said the Chief Executive Officer was appointed through a rigorous recruitment process aligned with global standards.The CEO was selected based on experience managing Botswana’s largest pension fund, with the government expressing confidence in her ability to lead the sovereign fund.She added that the CEO has undergone induction programmes with international sovereign wealth fund bodies, including the African Sovereign Wealth Fund Forum.The Assistant Minister indicated that while the BSWF has been legally established, initial capitalisation is still underway. She explained that the Fund’s initial portfolio will largely consist of non-cash assets, particularly underperforming SOEs earmarked for restructuring.She said future capitalisation will follow a three-pronged strategy: ring-fenced mineral revenues, dividends from restructured SOEs, and reinvestment of returns generated by the Fund. The approach, she noted, is designed to avoid shortcomings observed in existing funds such as the Pula Fund.Mophuting confirmed that the (BSWF) was established in 2025 under the Companies Act through the registration of Botswana Sovereign Wealth Fund Limited.

Explore

More

Politics

Politics

Mophuting defends Sovereign Wealth Fund OP placement