Botswana’s growing dependence on domestic institutional investors to finance its budget is heightening concentration risk and pushing the country closer to its statutory debt ceiling, the Botswana Public Officers Pension Fund (BPOPF) has warned.
In a recent brief, the fund cautioned that increased exposure of pension assets to government debt, coupled with the rapid exhaustion of local lending space, could undermine financial stability. In the brief titled “Botswana Tight Liquidity Situation And Prime Lending Rate Liberization,” BPOPF indicated that as of June 2025, Botswana’s domestic debt stood at P42.6 billion, which is about 18.7 percent of GDP, just shy of the 20 percent legal limit, raising concerns that the government could breach the ceiling before the end of the financial year.
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