It is only a matter of time before the country’s multibillion Pula pension fund, Botswana Public Officers Pension Fund (BPOPF) announces names of three Asset Management firms which are set to share atleast P1.5 billion through an incubation program.
Through the incubation programme, BPOPF intends to develop local talent, improve diversification and have a meaningful impact on the development of the industry
Following an Expression of Interest (EOI) tender issued by BPOPF seeking provision of Asset Management services, atleast three firms are said to have been shortlisted out of a total of 36 other companies.
This week BPOPF Chief Executive Officer, Boitumelo Molefe remained cagey regarding the shortlisted firms only limiting her sentiments to the fact that, “The procurement process is not complete as the board is yet to confirm the appointments. All firms that responded to the RFP were requested to present their value proposition and all firms who passed the four stages will be subjected to a legal due diligence,” she said.
Sunday Standard has however established that the three firms have been identified and that the decision will be made public in the coming quarter which is also the last of the year.
It has also emerged that the review of the submitted expressions of interest was based on the existence of demonstrable, determinable and relevant experience and also relative experience and knowledge of the applicants.
The asset management business in Botswana has for some years been dominated by foreign players. Previous beneficiaries of BPOPF’s asset management tenders entail giants such as African Alliance Botswana and Fleming Asset Botswana.
Molefe admitted this week that start-up and smaller asset managers in Botswana encounter barriers to entry which can inhibit competition and stifle potential growth. She said to achieve this an incubation program has been launched to increase local private equity and infrastructure investments
BPOPF believes that large institutional investors such as pension funds can through an Incubation Program, provide seedling capital, to enable the asset manager to build a verifiable track record.