Pula Fund
From Wikipedia, the free encyclopedia
| Company type | State-owned |
|---|---|
| Founded | November 1993 |
| AUM | US$4.1 billion (2023) |
| Owner | Bank of Botswana |
| Website | www |
The Pula Fund is the sovereign wealth fund of Botswana. As of December 2024, the fund has US$3.5 billion in assets under management.[1]
The Pula Fund was established in November 1993, to invest surplus revenues from diamond exports.[2][3]
In 1997, the fund was re-established in its current form, under the Bank of Botswana Act 1996 with the objective of providing greater flexibility in the management of international reserves, and greater certainty in the forecasting of annual “dividend” payments to the government from the Bank of Botswana.[4]
In 2008, the fund agreed to the Santiago Principles, a series of guidelines on best practices for sovereign wealth funds.[5]
As of 2015, the fund has assets valued at $7 billion.[2]
Prior to May 2019, the fund was restricted to investing in United States dollars, Pound sterling, Japanese yen, and euros. In May 2019, the Bank of Botswana eased these restrictions, increasing the number of eligible currencies to 17.[6]
In July 2020, the Bank of Botswana announced it would be seeking legislation to limit access to the fund, as the fund was being accessed by governments to meet budget deficits, leading to a steady fall in the fund's reserves.[7]
