Absa invests P2.5 billion in projects

• Powers corporates, SMMEs in infrastructure space
• Absa leverages on Pension Funds to develop sector
• Funded building of private clinic, med lab, internal roads

BAKANG TIRO

editors@thepatriot.co.bw

Absa Bank Botswana Managing Director Keabetswe Pheko-Moshagane has said over the past two years alone, Absa disbursed more than P2.5 billion to both large corporates and SMEs, enabling their active participation in infrastructure development across the country.

Pheko-Moshagane revealed recently during Private Equity Thought Leadership Forum hosted by the bank in Gaborone under the theme ““Leveraging Pension Funds for Infrastructure Development: Fostering Economic Growth and Creating Long-Term Value for Beneficiaries.”

She said these funds have supported a wide range of impactful projects, including the construction of a private clinic and medical laboratory, the building of in-roads in various villages, and the implementation of water reticulation systems in major settlements.

She said in Botswana; the continued growth of pension assets presents a transformative opportunity for the nation’s development and long-term prosperity.

Pheko-Moshagane said in 2024 Absa contributed P407 million in taxes to the national fiscus, reinforcing their role not just as a commercial enterprise, but as a responsible corporate citizen actively supporting the country’s socio-economic priorities.

“Through the bank’s performance, we are able to reinvest in initiatives that matter, from supporting small and medium enterprises (SMEs) to pioneering sustainable finance solutions, all of which contribute to Botswana’s economic diversification and growth,” said Pheko-Moshagane.

She added: “At Absa, we see ourselves as a bridge, connecting pension fund managers with viable infrastructure projects that offer both financial returns and socio-economic impact”.

For his part, the Vice President and minister of finance Ndaba Gaolathe said pension funds represent not just savings, but the dreams of teachers, nurses, engineers, public servants, and citizens who have served with quiet dignity and now deserve a return that is both secure and transformational.

Gaolathe said it is time for Botswana to unlock this domestic capital, to use it as a lever for inclusive infrastructure development, and to shift from dependence to dominion, from passivity to purpose.

He said the recent policy evolution, mandating a progressive elevation of domestic investment thresholds to 50%, should not be perceived as a limitation but rather as a pivotal opportunity.

“It is an invitation to harness our own capital to sculpt our own destiny, to invest in our own future with unwavering pride and strategic foresight,” he added.

He said there is a need to empower institutions such as the Botswana Development Corporation (BDC) and the Botswana Public Officers Pension Fund (BPOPF) to co-invest in transformational projects, anchored in professional risk management and robust returns.