16 Mar 2026

Pension capital has been highlighted as an important driver of national development while also safeguarding the financial future of members. 

Speaking at the Botswana Pensions Society annual conference Palapye on Thursday, Permanent Secretary to the Vice President, Dr Gape Kaboyakgosi noted that the assets managed within pension funds must not only protect the retirement savings of the contributors but should also support the country’s broader economic priorities. 

He said Botswana’s pension assets represented one of the most stable pools of long-term capital within the economy. 

He noted that the funds generated returns for members while also holding the potential to support national priorities such as infrastructure development, water security, transport networks, energy systems, digital connectivity and essential social services.

Dr Kaboyakgosi said long-term domestic capital was becoming increasingly valuable in today’s global economy where investment flows were more selective. He said pension funds were seen as a reliable source of ‘patient capital.’ 

That, he said meant that funds could be invested over long periods, translating into a type of investment that was essential for major development projects such as infrastructure, digital systems and other productive sectors that require sustained financial support. He emphasised that the strength of any pension system depended on sound governance, responsible investment practices and an informed membership, adding that regulatory reforms, diversified investment portfolios and the integration of environmental, social and governance considerations were considered key elements in building a resilient pension structure. Dr Kaboyakgosi said the future of retirement security would depend on inclusivity, innovation and alignment with the transformation of the economy, observing further that modern pension ecosystems must reach communities that remained underserved while harnessing technology and expanding models that supported retirement wellbeing for all citizens. “This outlook reflects the direction of Botswana’s economic policy under the Botswana Economic Transformation Programme (BETP) insofar as it seeks to accelerate diversification, strengthen national competitiveness and deepen productive sectors of the economy,” he said. Dr Kaboyakgosi further said that achieving such transformation required patient, long-term capital. He explained that pension assets remained an important part of that national effort and that the programme called for bold collaboration between pension funds and government in order to unlock national competitiveness. 

He said while Botswana’s diamond-led growth model has served the country well for many decades, enabling a transition to upper-middle income status and helping to build strong institutions, the model has now reached a period of stagnation, and that consequently, inequality, poverty and unemployment had increased while economic diversification had slowed. He said the ambition was being advanced through the BETP, which served as a central pillar of National Development Plan 12, whose objective was to accelerate diversification, strengthen competitiveness and build a digitally connected economy that participated effectively in global markets and recognised the realities of the domestic constraints and the evolving global landscape. 

Chairperson of Botswana Pensions Society, Ms Tsholofelo Mosimanewapula said the theme of the conference: Beyond Returns: Leveraging Pension Capital for National Development and Secure Retirement Communities invited them to rethink the purpose and potential of pension funds. 

She said pension assets were not just numbers on financial statements but that they represented the future wellbeing, dignity and security of members and could serve as a powerful engine for national development when guided by sound governance and responsible investment strategies. 

Head of the secretariat at the Africa Pension Supervisors’ Association (APSA) in Kenya, Dr Alfred Shem highlighted that APSA brought together pension regulators and supervisors from across Africa to canvas issues of common interest. 

Dr Shem noted that the purpose of retirements benefits system was to mitigate old age poverty and to enable consumption smoothing. The secondary objective, he said, was to promote national savings for development. 

He also noted that some of the challenges facing the pension industry in Africa was dual labour market, which left the informal labour market not covered by existing pension arrangements. The other challenge was high labour mobility as well as low and irregular incomes, he said.