10 Mar 2013

Parliament has approved a motion by Shoshong MP, Mr Phillip Makgalemele which requested government to develop innovative ways of attracting banks to rural areas as a strategy to boost rural economic development.

Contributing to the debate, the Assistant Minister of Finance and Development Planning, Mr Vincent Seretse said government recognised the crucial role of access to financial services by Batswana and efforts had been made to make this a reality.

He noted that this was already happening with the aid of technology as people in rural areas were now able to receive money using their cell phones. Mr Seretse said government remained committed to ensuring that an innovative financial sector allowed people in rural areas to perform financial transactions.

The MP for Mmadinare, who is also the Vice President, Dr Ponatshego Kedikilwe said it was part of the rural development council to encourage investments in rural areas.

He said in order for this to happen, these establishments should be provided with space where there would be security to attract them to such areas. This thinking, he said, should also consider the main economic activities in different parts of the country and consider attracting all forms of investments to rural areas.

The MP for Kgalagadi North, Mr Phillip Khwae supported the motion noting that this could improve livelihoods. He also mentioned that councils had a responsibility to attract banks to rural areas as they had banks that they did business with.

MP Khwae further said government revenue services should also assist in approaching banks to do business in rural areas.

The MP for Mahalapye East, Ms Botlogile Tshireletso said people in rural areas needed commercial  banks as this could encourage a culture of saving. Farmers who sold their cattle, she noted, were forced to travel longer distances to access banks.

Tati East MP, Mr Samson Guma said he supported the motion in principle but noted that it might not make business sense as banks depended on deposits to conduct their business.

 He said the National Development Bank and Botswana Savings Bank should be encouraged to spearhead the initiative.

“That is why I am against the privatisation of NDB as the bank is funded by government and can be able to pursue a development agenda,” he said. ENDS