Old Mutual Botswana Launches Kgodiso Portfolio to Support Long-Term Retirement Savings

Old Mutual Botswana Launches Kgodiso Portfolio to Support Long-Term Retirement Savings. Old Mutual Botswana has launched Kgodiso, a smooth bonus investment portfolio designed to help retirement savers grow their savings over the long term while reducing the impact of sharp market declines.

The product was unveiled at a human resources thought leadership session hosted in partnership with Progressive Institute. The event brought together HR practitioners, actuaries, investment specialists and employee benefits experts to discuss retirement planning and investment strategies.

Smooth bonus portfolios aim to provide investment growth while reducing fluctuations in returns experienced by members. Old Mutual said it introduced the concept in 1967 and has continued refining the approach through financial crises, the COVID-19 pandemic, inflationary pressures and interest rate shocks.

According to the company, significant investment losses can be particularly damaging for people approaching retirement because they have less time to recover before needing to access their savings.

Kgodiso was designed and developed in Botswana, drawing on the group’s experience in South Africa, Namibia, Eswatini and Zimbabwe. During the launch session, executives from South Africa and Namibia shared their experiences with the investment approach in their respective markets, while a Botswana-based actuary discussed the new portfolio’s design.

The name Kgodiso means growth in Setswana, reflecting the portfolio’s objective of supporting the long-term growth of retirement savings.

The launch comes amid concerns about retirement preparedness in Botswana. Statistics Botswana reported annual inflation of 7.8% in September, while figures from the National Business and Prosperity Research Institute (NBPRI) indicate that approximately 38% of the country’s labour force is covered by a formal retirement plan.

Old Mutual said retirement outcomes depend on consistent contributions, the length of time savings remain invested and preserving accumulated funds when changing jobs. The company also highlighted the importance of helping members remain invested during periods of market uncertainty.

As part of its plans following the launch, Old Mutual Botswana intends to incorporate Kgodiso into its financial education programme and continue engaging employers and HR practitioners on retirement planning.

The company said the initiative would support ongoing discussions about improving long-term retirement outcomes for members.