BPOPF Boosts Real Estate Acquisitions Amid Regulatory Shifts

The Botswana Public Officers Pension Fund (BPOPF) has been actively increasing its property acquisitions, largely driven by recent changes in local investment regulatory requirements. These mandates require pension funds to hold a minimum of 50% of their assets domestically by 2027, triggering a notable shift from predominantly offshore investments to a fortified local investment strategy. The Competition and Consumer Authority (CCA), in its annual report, disclosed that the majority of the 24 transactions assessed and finalized within the Real Estate sector were primarily BPOPF engagements, executed through property asset management firms Seventy 5 Degrees (Pty) Ltd and Khumo Property Asset Managers. By December 2023, BPOPF had already exceeded interim domestic investment targets, underpinning the increased transactional activity in Botswana's real estate market. Additionally, the BPOPF faces external pressures to enhance its portfolio further, adhering to ambitious growth targets set for December 2024, with its CEO, Moemedi Malinda, affirming ongoing efforts to close more significant deals. The growing demand in the real estate market coincides with the Botswana government’s National Development Plan 12 (NDP12), which focuses on substantial infrastructure investments to stimulate economic growth. Economic Advisor Noma Sephuma emphasized the strategic importance of infrastructure development during an event facilitated by Absa Bank Botswana, highlighting the need for a regional approach to bolster economic activity.