Developing a Broad-Based Employee Pension Scheme for Botswana

The evaluation and reform of Botswana’s system of pension provision is prompted by three main observations, namely high levels of poverty in old age which will persist unless broader pension participation is ensured; low levels of long-term household savings; and rapid economic development, which can make a broaderbased pensions system affordable.

This research study identifies four main factors that support the need and viability of a broad-based pension scheme, and makes the case for moving to such an arrangement while taking account challenges such as high levels of unemployment and informality in the economy.

The report then evaluates the viability of such an arrangement, presenting evidence from some financial modeling undertaken for this study. Some broad institutional parameters, considerations and options are offered to inform the design and implementation process and, finally, recommendations are made on how best to move forward with this process.