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Pula Fund (Botswana, Bank of Botswana)

Botswana · Africa · Founded 1994 · Savings and future generations fund · IFSWF full member

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Focus

Botswana, Bank of Botswana: what it invests in

TechnologyFinancial services
Public equitiesFixed incomeInfrastructureCash and money markets

Geography Global

Scale

Botswana, Bank of Botswana: how big it is, and on what basis

BWP 27.87B
Fund market valueAs of

In US dollars: about USD 2.05B. Bank of Botswana audited note: USD 2,053.7 million at 0.0737 US dollars per pula.

Return, 2025 14.3%

Transparency

Botswana, Bank of Botswana: what it publishes

7.5 of 10 Band 4 of 5

Published 7 · Partly 1 · Not published 2

Our 10 item score. It measures what is public, not how well a fund is run.

Fund valueS6
BWP 27.87B (31 December 2025, audited)
As of
In US dollarsS6
About USD 2.05B (At the Bank rate)
As of
Return, 2025S6
14.3%
As of
Latest valueS5
BWP 30.82B (30 June 2026, unaudited)
As of
Externally managedS4
About 50%
Equity targetS6
60%
As of
Transparency scoreS6
7.5 of 10
As of

At a glance. The Pula Fund is the long-term tranche of Botswana's foreign reserves, run by the Bank of Botswana to save diamond income for future generations. It held BWP 27.9 billion (about USD 2.05 billion) at end 2025, down from BWP 38.5 billion as withdrawals topped up liquid reserves, and recovered to BWP 30.8 billion by June 2026. It returned 14.3 percent in 2025. S6 S5

Key points

  • BWP 27,865 million at 31 December 2025 (audited), about USD 2,054 million at the Bank rate. S6
  • Market return of 14.3 percent in 2025. S6
  • Strategic mix: 60 percent equities, 20 bonds, 10 high yield and 10 unlisted infrastructure. S6
  • About half the fund is run by external managers, the rest in house. S4
  • Government withdrew BWP 11.3 billion and invested BWP 11.5 billion in 2025. S6
  • Back to BWP 30.8 billion on 30 June 2026 in the unaudited monthly statement. S5

Interesting facts

  • The Pula Fund took part in writing the Santiago Principles in 2008. S1
  • Eligible currencies rose from 4 to 17 in May 2019. S2
  • No single holding may exceed 10 percent of a company’s votes. S6

Mandate and goals

The fund preserves part of Botswana’s diamond income for future generations, investing reserves above medium-term needs for capital preservation, positive real returns and liquidity. S1 S4

  • Preserve capital and earn positive real returns over the long term. S4
  • Hold reserves beyond the six-month import cover kept in the Liquidity Portfolio. S7
  • Pay dividends to the Government Investment Account under policies set with the Finance Ministry. S4
  • Spending rule: Deposits and withdrawals follow Finance Ministry rules tied to import cover in the Liquidity Portfolio; Government cannot withdraw more than its share S4

How it invests

IndustriesTechnology, Financial services. Sector agnostic S6
Asset classesPublic equities, Fixed income, Infrastructure, Cash and money markets S6
StagesPublic markets S6
GeographyGlobal. Mainly US dollar assets; non-dollar exposure capped and limited to investment-grade currencies S6
Direct / through funds / co-investYes / No / No S4
Managed in house50 percent S4
Ticket sizeNot applicable; listed portfolios only. S6
External managersInternational managers for about half the fund; a portfolio consultant helps select them; a global custodian S4
Co-investment programmeNone S4

Asset mix: Equities (actual) 49.8%, Bonds (actual) 46.7%, Short-term deposits (actual) 3.6% (as of 2025-12-31) S6

Published criteria

  • Safety first, then liquidity, then return. S7
  • Bond duration around five years; no private placements or unquoted stocks in the equity book. S6

Past investments

The fund has not published a list of investments.

Case studies

A buffer in a weak diamond market S6 S5

  • What: The fund sold equities to refill the Liquidity Portfolio while diamond sales were subdued.
  • When: 2024 to 2025
  • Size: BWP 26.4B withdrawn over two years
  • Why: Keep import cover at the level set by policy.
  • Outcome: Fund value fell to BWP 27.9B at end 2025, then rose to BWP 30.8B by June 2026.

Investment process

Three tiers: the Board approves policy and the strategic allocation; an Investment Committee chaired by the Governor decides execution and tactical moves; the Financial Markets Department implements. S4

CommitteeRole
Board of DirectorsChaired by Kenneth Molosi; approves policy and allocation S8
Investment CommitteeChaired by the Governor S4
Audit and Risk CommitteeBoard committee S4

How to approach: Managers are chosen with a portfolio consultant; no route for outside approaches is published. S4

Size and returns

  • Headline size: BWP 27.87B (Fund market value, as of 2025-12-31) S6
  • In US dollars: about USD 2.05B. Bank of Botswana audited note: USD 2,053.7 million at 0.0737 US dollars per pula.
  • Monthly statement, 30 June 2026: BWP 30.82B (Fund market value, as of 2026-06-30) S5
  • Return, 2025: 14.3 percent (Market return) S6
  • Size over time (BWP billion): 2024-12 38.46, 2025-06 25.69, 2025-12 27.87, 2026-06 30.82 S5 S6

Leadership

NameTitleSince
Lesego Caster MosekiGovernor and Chair of the Investment Committee S82025-11
Kenneth MolosiChairman, Board of Directors S62025-05-01
K. S. MasalilaDeputy Governor S6Not published
Otsile ModukaActing Director, Financial Markets Department S9Not published

Governance and transparency

  • Legal basis: Bank of Botswana Act, Part VI and Section 35 (amended 2022) S4
  • Oversight: Bank of Botswana Board; Ministry of Finance consulted on policy S4
  • Auditor: Ernst and Young S4
  • Annual report goes to the Finance Minister within three months and to the National Assembly within 30 days. S4
  • Publishes a Santiago Principles self-assessment. S4

Transparency score: 7.5 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.

  • Published: total assets, annual return, asset allocation, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S4 S5 S6 S8
  • Partly published: geographic or sector split. S6
  • Not published: long-term returns, holdings or deal list. S6

History

DateEvent
1994Pula Fund established. S1
1997Re-established under the Bank of Botswana Act. S2
2008Took part in writing the Santiago Principles. S1
2019-05Eligible currencies widened to 17. S2
2025-11Lesego Caster Moseki became Governor. S8
2026-06-30Fund at BWP 30.8B in the monthly statement. S5

For family offices

The Pula Fund is a reserve portfolio with no co-investment or private capital programme. S4

Reports

Common questions

How big is the Pula Fund?

BWP 27.9 billion at 31 December 2025 (audited), about USD 2.05 billion; BWP 30.8 billion at 30 June 2026. S6

Why did it shrink in 2025?

Withdrawals refilled the liquid reserve while diamond sales were subdued. S6

Who runs it?

The Bank of Botswana, led by Governor Lesego Caster Moseki, who chairs the Investment Committee. S8

Is it an IFSWF member?

Yes, a full member. S3

All sovereign wealth funds in Africa · All savings and future generations funds · All funds in Botswana

Sources

  1. S1Bank of Botswana, Pula Fund page
  2. S2Wikipedia, Pula Fund
  3. S3IFSWF, members list
  4. S4IFSWF, Pula Fund Santiago Principles self-assessment 2025
  5. S5Bank of Botswana, monthly statement of financial position, June 2026
  6. S6Bank of Botswana, Annual Report 2025
  7. S7Bank of Botswana, reserve management guidelines
  8. S8Bank of Botswana, board of directors
  9. S9The Tswana Times, central bank results presentation (June 2026)

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