Botswana Insurance Fund Management (Bifm) is the country’s largest and oldest asset manager boasting a rich heritage of protecting the country’s wealth for over 35 years. More than 60 percent of Botswana’s assets are under its management, of which 65 percent is held offshore. Through the company’s subsidiaries Khumo Property Asset Management, Bifm Capital and Aflife Zambia, which is to the North of Botswana, it has managed to transform Botswana’s development fortunes for decades.

Before glass buildings and tarred roads fashioned Botswana, most parts of the country were rural villages. After gaining independence in 1966, Botswana was one of the poorest countries in the world. With the discovery of diamonds however, it was an advent of a new era of economic emancipation. Liberation wars in what was then Southern Rhodesia (now Zimbabwe) and South Africa did not stop the Botswana economic engines from firing on.

It was around this time that Botswana Insurance Holdings Limited (BIHL), the parent company to Bifm and Botswana Life Insurance Limited (BLIL), the largest life insurance company in Botswana was established. In 1991 BIHL listed on the Botswana Stock Exchange (BSE) and has grown to become the fourth largest listed company on the BSE.

Against this backdrop, Bifm has contributed immensely towards the development of Botswana and its people. A firm principle – ‘Development of Botswana for Batswana’ has made Bifm a custodian of the country’s wealth, so becoming a key contributor to economic growth for decades.  

Double digits in economic growth, the historic shift of Botswana from being one of the poorest to the fastest growing economies in the world in the 80s cannot be attributed to minerals alone. Companies such as Bifm were making lifetime investments in property and infrastructure, which were to benefit Batswana in the future. A closer look at Botswana and Bifm’s stories and history indicates that they are intertwined.

Today, from the panoramic views of Gaborone at Fairgrounds Office Park – Bifm’s flagship property that is of world-class standards. With access to gym facilities and a coffee shop, the office parks set up is designed to make the offices a one-stop shop, to Main Mall’s major landmark Plot 21, and the confounding seven storey SADC Head Offices in the Central Business District consolidates Bifm’s position as one of the pioneers of property development in Botswana. Bifm has been part of the ground breaking consortium that has funded the first ever Public Private Partnership which saw the asset management company handover Plot 21 to its tenants and the SADC Headquarters, to Shopping Malls around the country, the asset management company has left an indelible mark.

Bifm’s Chief Executive Officer Tiny Matilda Kgatlwane notes that although Bifm is a company that has a wide aray of products and subsidiaries asset management remains the pillar of the organization. Over the years the investment philosophy has seen the business grow and forge strategic alliances with the likes of BlackRock, the world’s largest asset management firm with assets under management of over $3 trillion.

Bifm is always looking to diversify the asset portfolio by constantly looking at the potential of asset classes other than equities, so non-traditional assets with which to reduce reliance on and hence risk exposure to traditional investment vehicles are always being sort. Bifm’s non-traditional assets such as in the healthcare sector through Gaborone Private Hospital and tourism through its shareholding in KYS Investments have contributed to the bottom line.  

As part of creating its footprint in Africa, Bifm joined forces with Zambian nationals to create Aflife Zambia, a pension administration and asset management organization. In addition, Bifm’s property development activities, which have been part of the diversification strategy and adding value to the business, have been one of its cornerstones, making a valuable contribution to the company and providing an investment option for its clients.  

As part of this diversification strategy, Bifm and Iris Capital formed a joint venture to create Khumo Property Asset Management, which is one of the leading property management companies in Botswana. Amongst its clients are several of the country’s largest property portfolios including those of Turnstar Holdings and Debswana Pension Fund.

By going beyond only managing client funds within set benchmarks and mandates Bifm has entrenched its position as a market leader. Deploying significant resources and experience to actively seek out, develop and manage viable investments which has complemented its asset management ventures.

With its roots firmly planted in Africa, and its experience in providing innovative solutions for dynamic wealth management in emerging markets, Bifm is committed to sharing its expertise and experience with stakeholders in other African countries whose economies are undergoing similar transformation to that being experienced in Botswana.

Botswana is now one of the most successful countries in Africa despite its small population. It is a key player in the SADC region and an influential trade partner for many countries. Bifm has achieved major milestones in asset management in Botswana. From humble beginnings today, it is a market leader.