Reserves Managers trained on enhancing returns in the current environment

The existing environment characterised by, among others, persistent low investment returns, the rise of China as an economic powerhouse and rapid technological changes affecting all spheres of the financial sector, requires reserves managers to rethink their approaches to portfolio management. In addition, the impact of the interventions to deal with the novel coronavirus (COVID-19) pandemic has permeated through to investment markets and the global economy. The evolution of the pandemic is highly uncertain, making it difficult for policymakers to formulate appropriate policy responses to its economic impact. In navigating this environment, reserves managers are faced with the question of whether the objectives of capital preservation, liquidity provision and generating returns can still be attained while applying prudent reserves management.

Against this background, MEFMI in collaboration with Ninety-One conducted a three-day workshop on contemporary issues in sovereign reserves management from 23 – 25 June 2021. The workshop was attended by 51 officials from ten (10) MEFMI member countries, namely, Botswana, Eswatini, Kenya, Mozambique, Namibia, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe.

The workshop enhanced participants’ knowledge of the investment landscape, investment strategies that can be applied in the current environment and the impact of Central bank digital currencies on the management of reserves. Participants also benefitted from experiences and good practices shared by their peers.

The participants are expected to use the acquired knowledge to align their investment policies and strategies to the existing environment to achieve the objectives of capital preservation, liquidity and yield enhancement. MEFMI will continue to support member countries’ efforts to improve the management of sovereign reserves.

The course was facilitated by five (5) resource persons, namely Messrs. Johan du Plessis, Michael Power, Russell Silberstone, Brian Kahn and Phillip Saunders all from Ninety One.

Prepared by Noel Mahombera