09 Apr 2026

Minister for State President, Defence and Security, Mr Moeti Mohwasa, has informed Parliament that significant progress has been made in establishing Botswana Sovereign Wealth Fund on a solid legal and governance footing. Minister said this Wednesday, in response to a parliamentary question that sought for a detailed update on the protocols, processes and activities of the Fund. 

Minister Mohwasa said the Botswana Sovereign Wealth Fund Limited was formally established on May 27, 2025 as a corporate entity wholly owned government and incorporated under the Companies Act. The minister explained that from its very inception, the Fund formally adopted the Santiago Principles, the international gold standard for sovereign wealth funds. 

“This foundational step commits the Fund to sound governance, accountability, transparency and prudent investment management, anchoring it within internationally recognised best practice from day one,” he said. 

He added that the board of directors was constituted in June 2025 and to date, it had convened three formal sittings, comprising one physical and two virtual meetings, during which it prioritised development of a comprehensive governance framework. 

He informed Parliament that foundational documents had been established, which included the board charter and governance protocols, code of ethics and conflict of interest policy, investment governance structure and the audit and compliance architecture. 

Others, he said, included risk management framework, remuneration and human resources framework, as well as financial controls and reporting standards. He explained that such measures provided the institutional architecture necessary for accountability and prudent stewardship of the Fund’s resources. Minister Mohwasa said a key early milestone was the recruitment of the chief executive officer, who formally commenced duties on January 1 this year. 

“This appointment marked the transition from foundational governance design to operational implementation. The operationalisation under the CEO since his appointment, has focused on building the Fund’s institutional infrastructure. This includes developing operational documentation, internal policies and procedures, control systems and designing the organisational structure,” he added. He said the Fund was currently in its structured setup phase, with the CEO recruiting key personnel across finance, legal, investments, risk and compliance functions. 

Again, the minister said a delegation of operational authority from the board to the CEO was being implemented in line with the approved governance framework. Minister Mohwasa further informed Parliament that the current economic downturn, driven by the diamond market slump, underscored the necessity of the Fund’s prudent design. However, he said foundational milestones already achieved were critical, including the adoption of the Santiago Principles, which guaranteed that the Fund would be managed with the transparency and discipline required to preserve capital for future generations. 

Secondly, he said, was the establishment of a robust governance framework, the board charter, risk framework and audit architecture to ensure that the Fund’s operations would be shielded from political interference and short-termism. In addition, he said, was building institutional capacity and that the recruitment of a CEO as well as the ongoing process to hire professional staff to ensure that the Fund would be managed by competent hands, focused on long-term value creation. Mr Mohwasa said the comprehensive short, medium and long-term milestones, including detailed investment frameworks and performance benchmarks, would be developed once such foundational structures were fully operational. 

“These will be formally communicated to the shareholder and, where appropriate, to Parliament in due course,” Minister Mohwasa said. Member of Parliament for Bobirwa, Mr Taolo Lucas, had asked the minister to update Parliament on the protocols, processes and activities undertaken to support and sustain the Botswana Sovereign Wealth Fund. Mr Lucas also asked the minister to outline how the ministry intended to manage the Fund’s sustainability amidst current economic conditions and to identify the projected milestones that would ensure generational equity as the primary objective of the Fund. ENDS