23 Jul 2015

The problem of over-indebtedness in Botswana cannot be solved by government alone hence the need for consumers and credit providers to play their part.

Speaking at the fifth anniversary celebrations of Bayport Financial Services, Minister of Trade and Industry Mr Vincent Seretse said factors such as consumer ignorance and ruthlessness on the part of certain financial providers has left most Batswana in debt. He said Bayport Botswana should be applauded for dedicating its services to tackling the problem of over-indebtedness through their financial literacy program.

“Their efforts and care in client protection were recognised by the Global Smart Campaign and apart from this being a wonderful achievement, Bayport Botswana’s Smart Campaign certification is a sign to government that our country is on the right path,” he said.

He said if one credit provider can operate according to international best practice, it means that the rest of Botswana’s financial services industry can do the same. Minister Seretse further said that government was doing all it can to advance the economic and social wellbeing of its people.

“We view responsible and ethical credit providers as important partners on this journey,” he said, adding that the challenge of unemployment greatly worries government.

He challenged the private sector to help government in creating employment. 

For his part, executive director of Bayport Botswana Mr Father Maphongo said they are grateful to government for having seen the need to empower citizens by allocating deduction codes to prop up indigenous Batswana businesses. “At Bayport we have set ourselves high standards on client protection, standards we hope our colleagues in the market will emulate, standards which we hope the regulators will enforce in due course, standards which are to benefit most importantly the client,” he said.

He indicated that they are the first micro lender in Africa to receive a client protection certification.

Mr Maphongo said they have implemented several measures to combat over-indebtedness. Ends