Botswana has appointed Farouk Gumel, a Nigerian financial expert and former chairman of the Nigerian Sovereign Investment Authority, to spearhead its newly launched Sovereign Wealth Fund Limited, a multi-billion-dollar initiative aimed at diversifying the nation’s economy away from its reliance on diamond mining.

President Duma Gideon Boko unveiled the fund on September 14, 2025, at a ceremony in his Gaborone office, emphasizing its role in securing Botswana’s economic future. “This is about creating jobs, driving growth, and ensuring our nation’s wealth works for all Batswana,” Boko said, framing the fund as a cornerstone of his administration’s vision for long-term resilience and global competitiveness.

The Botswana Sovereign Wealth Fund (BSWF) will channel resource revenues into sectors like infrastructure, technology, healthcare, and renewable energy, aiming to reduce the country’s dependence on diamonds, which account for roughly 30 percent of GDP and 70 percent of export earnings.

Gumel, currently vice chairman of Tropical General Investments Group, brings extensive experience from his tenure at NSIA, where he oversaw strategic investments in Nigeria’s $1.25 billion sovereign fund. His appointment as BSWF’s inaugural chairman was met with optimism, given his track record in capital markets and manufacturing. He will lead a diverse board tasked with shaping investment strategies, governance, and risk policies to balance financial returns with national impact.

Joining him is Vice Chairperson Emmah Peloetletse, Botswana’s Head of Service and Debswana chairperson, alongside board members like Malebogo Mpugwa of De Beers, Anil Dua of Afreximbank, and Lesego Caster Moseki of the Bank of Botswana, blending local and global expertise.

The BSWF, projected to be among Africa’s largest, draws inspiration from models like Norway’s oil fund and Nigeria’s NSIA, aiming to stabilize Botswana’s economy amid fluctuating diamond markets. Debswana, the world’s leading diamond producer, will be a key revenue source, with plans to invest in projects like solar energy and regional transport hubs. Boko highlighted the fund’s potential to create jobs and open “new frontiers of opportunity,” particularly for youth, in a nation of 2.4 million where unemployment hovers around 20 percent.

Analysts view the move as timely, with global diamond demand softening due to lab-grown alternatives and geopolitical shifts. Botswana’s fiscal discipline—maintaining budget surpluses and low debt—positions it well to scale the fund, though challenges like governance transparency and market volatility loom. Gumel’s leadership, backed by a board with figures like Sunil Sabharwal, ex-U.S. director at the IMF, signals a commitment to rigorous oversight and international credibility.

As Botswana embarks on this ambitious venture, the appointment of a Nigerian to chair the fund underscores growing intra-African financial collaboration, with Gumel’s expertise poised to guide the nation toward a diversified, resilient economic future.