Wednesday, May 22, 2024

BPOPF to fund Botswana’s ailing infrastructure

The Botswana Public Service Pension Funds (BPOPF), the biggest pension fund in the country, said Tuesday that it will direct more money to Botswana’s ailing infrastructure as part of its new investment strategy.


“The infrastructure gap in this country is so high. We are not worried about the capacity, what we are concerned about is the speed at which we can allocate funds to the project,” chief executive officer of the BPOPF, Moemedi Malindah, told Sunday Standard online  on the sidelines of the Botswana Bond Market conference in Gaborone.


“The government bureaucratic system takes a long time to do the planning and approve projects,” he added.


The grey-hair fund’s  total assets under its management  total P 100 billion as of now– moving from P99.5 billion at the end of August.


Some of the projects that might be supported include road net-work- which are so bad around tourist centers of Maun and Shakawe, private hospitals outside the Gaborone, power stations, agricultural storages solutions and data centers.


The BPOPF is due to appoint the infrastructure manager who will start work by November 15, this year.
“We have to change the game. We have to have a situation where money starts looking for these projects, not the other way round,” Malindah said.


The move comes at a time when the BPOPF is to repatriate P 2 billion to Botswana per annum over the next five years to prop-up the local economy.
Part of the plan is to increase the number of private equity funds from two-to-four to give companies that are in need of assistance more options.


“We are also incubating Batswana fund management companies specialising in listed equities,that are owned by Batswana. And in the growth stage they will start focusing locally, and over time going regionally and internationally. We want them to ultimately be able to buy in the developed market like London Stock Exchange,” Malindah said.

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