• Botswana launched a new sovereign wealth fund on September 9, 2025, to reduce reliance on diamonds and support long-term prosperity.

• Unlike the Pula Fund created in 1994, the new vehicle will manage both liquidity and assets, including stakes in state-owned enterprises.

• The initiative is part of Botswana’s Economic Transformation Program (BETP), which targets services-led growth, financial hub ambitions, investment attraction, and sustainable development.

Botswana launched a new sovereign wealth fund on September 9, 2025, to diversify its economy, cut dependence on diamonds, and secure long-term prosperity.

?? ???????? ????????? | President @duma_boko today launched Botswana’s first Sovereign Wealth Fund, a bold step to reduce dependence on diamonds & safeguard long-term prosperity.#Botswana #EconomicTransformation pic.twitter.com/ukNRRfs2MP

— Office of the President| Republic of Botswana. (@BWPresidency) September 9, 2025

Farouk Gumel, chairman of the fund’s board, stated at a press conference that this new investment vehicle distinguishes itself from the 1994 Pula Fund by actively promoting growth and managing state assets, rather than solely conserving liquidity for economic stabilization.

Emma Peloetletse, deputy chair of the board and permanent secretary to the presidency, said the plan is to draw only from the fund’s returns without touching the invested capital. She noted that investments could target both foreign and domestic opportunities, according to remarks reported by Zone Bourse.

The launch comes as global diamond demand weakens and local production falls. The World Bank recently stressed that Botswana’s economy remains highly dependent on diamond exports, which account for more than 90% of national exports while generating limited employment.

In response, the government has undertaken structural reforms to diversify growth and build a skilled workforce suited to a changing labor market.

The new fund forms part of the Botswana Economic Transformation Program (BETP) unveiled on July 15, 2025. The plan seeks to revitalize the economy and reduce unemployment.

The BETP rests on four strategic pillars: transition toward a services-led economy, positioning Botswana as a regional financial hub, leveraging political stability to attract investment, and promoting sustainable and inclusive growth.

This article was initially published in French by Ingrid Haffiny (Intern)

Adapted in English by Ange Jason Quenum