Botswana appoints Nigeria’s Farouk Gumel Chairman of Sovereign Wealth Fund
Botswana has appointed Nigerian business leader, Farouk Gumel, as Chairman of its newly established Sovereign Wealth Fund, created to drive economic diversification, create jobs and manage state companies.
Ade Adefeko, Honorary Consul of Botswana in Lagos, congratulated Gumel on the appointment, describing him as his “aburo” (younger brother) and expressing optimism about future collaboration. “Proud of my aburo Farouk Gumel on his appointment as Chairman of Botswana Sovereign Wealth Fund. I look forward to working with him,” Adefeko said.
The Southern African country, long regarded as an African economic success story, is seeking to cushion the impact of a prolonged slump in the global diamond market, its key export. The new fund is expected to play a different role from the Pula Fund, Botswana’s earlier sovereign wealth vehicle managed by the central bank, which has been weakened by recurring deficits.
Speaking at the fund’s launch, Gumel explained that unlike the Pula Fund, which is a liquidity stabilisation vehicle, the new Sovereign Wealth Fund will be growth-driven. “We are not only going to be managing cash, but also assets, including some state-owned entities,” he said.
Deputy Board Chair, Emma Peloetletse, added that the fund will draw only from investment returns rather than capital, and has the mandate to invest both locally and abroad.
Botswana’s economy contracted by 3% last year and is projected to contract again in 2025 due to the downturn in diamond revenues, which account for about three-quarters of exports and one-third of fiscal income.
A chartered accountant by training, Mr. Farouk Gumel is Group Executive Director and Vice Chairman for Africa at TGI Group, where he oversees agri-business and related investments across the continent. He also chairs WACOT Rice and has held leadership roles at the Nigeria Sovereign Investment Authority (NSIA) and Union Bank of Nigeria (UBN).
Gumel, a fellow of the Institute of Chartered Accountants in England and Wales (ICAEW) and a member of the Institute of Chartered Accountants of Nigeria (ICAN), holds degrees from the University of Northampton and Newcastle upon Tyne. He also serves on the board of the Corporate Council on Africa.
