Botswana Appoints Nigeria’s Farouk Gumel to Chair New Sovereign Wealth Fund
From Abuja to Gaborone, a bold move that signals both regional cooperation and a long-term economic reset took off, with Botswana appointing a Nigerian banker, investment expert and business strategist – Farouk Gumel, as chairman of its newly established multi-billion-dollar Sovereign Wealth Fund (SWF).
The fund, unveiled by President Mokgweetsi Masisi’s administration, represents Botswana’s most ambitious attempt yet to reduce reliance on diamond revenues. The backbone of its economy for half a century. Diamonds account for more than 80 percent of Botswana’s exports, but volatile prices, declining ore quality, and mounting youth unemployment have sharpened calls for diversification.
The Sovereign Wealth Fund is designed to channel surpluses from diamond sales and other government revenues into long-term investments across infrastructure, renewable energy, agriculture, and technology. Officials say the model borrows lessons from Norway’s oil fund and Singapore’s Temasek Holdings, with a clear mandate: secure future generations against resource depletion.
President Masisi described the appointment as “a strategic step toward reshaping our national wealth management and bringing in a continental perspective.”
Gumel, a former chairman of Nigeria’s Union Bank and current executive in the Dangote Group, is regarded as a bridge-builder between finance, industry and public policy. Known for his pragmatic approach, he has sat on boards across agriculture, energy, and financial services, advocating for African-led solutions to African challenges.
His appointment underscores Botswana’s willingness to cast its net beyond domestic technocrats, signaling a recognition that African economies are increasingly interconnected.
“Farouk Gumel combines experience in finance, governance, and private sector transformation. He brings to Botswana a fresh lens shaped by Nigeria’s own struggles and successes in managing resource wealth,” said Dr. Neo Moroka, former trade minister and economic advisor.
The decision is not without political undercurrents. Opposition figures in Gaborone have long criticized what they call “the diamond dependency trap,” pressing the government to diversify faster. By bringing in an external figure of continental stature, the Masisi administration seeks to project seriousness about reform.
Some critics, however, worry about sovereignty and question why a non-Batswana was chosen to chair a fund so central to national interests. The government counters that Gumel’s appointment is temporary, aimed at setting strong foundations before leadership transitions to a local successor.
Beyond boardroom politics, the stakes are deeply human. Botswana’s youth unemployment hovers above 25 percent, and inequality is widening despite decades of diamond-driven growth. Civil society groups are urging that the SWF prioritize investments that create jobs at home rather than only accumulating foreign assets.
“We need this fund to mean more than numbers in New York or London. It must drive factories, farms, and digital startups here in Botswana,” said Mpho Moalosi, a youth entrepreneur in Gaborone.
For Nigeria, the appointment of one of its own signals a growing export of financial and managerial expertise, even as the country grapples with its own underperforming Sovereign Wealth Fund. Analysts suggest Gumel’s role could foster cross-learning between the two nations.
It also highlights a trend: African states looking inward to the continent for leadership talent, rather than defaulting to Western consultants. If successful, Botswana’s fund could become a case study in how African countries use resource revenues to escape the so-called “resource curse.”
Gumel faces a dual challenge: ensuring the fund delivers strong returns while convincing ordinary Batswana that it is not just another elite financial experiment. With the fund’s launch coinciding with volatile global markets and climate-driven shifts in resource demand, the road ahead is uncertain but laden with possibility.
As one Gaborone-based economist put it: “Botswana is betting its future on this fund. The diamonds built the house. Now the Sovereign Wealth Fund must make sure the lights stay on.”
