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Botswana has launched a new sovereign wealth fund aimed at boosting diversification, creating jobs, and better managing state-owned enterprises as the country grapples with a prolonged diamond slump. Unlike the long-standing Pula Fund, which serves mainly as a rainy-day reserve, the new fund is designed for growth, with investments spanning both domestic and international markets. Officials say only returns, not capital, will be used to finance projects, ensuring sustainability. Led by a board of local and global experts, the fund will also oversee struggling state firms in need of reform. With the diamond industry accounting for three-quarters of exports, Botswana hopes this initiative will cushion its economy, spur long-term development, and reduce dependence on its fading revenues from diamonds.
Reuters