08 Feb 2016

The Minister of Finance and Development Planning, Mr Kenneth Matambo says Barclays Bank Botswana branch closure in Sowa Town was justified by the bank on commercial grounds.

Mr Matambo said he was informed that the branch, which was closed on October 30 last year, was not profitable because it did not generate sufficient revenue to cover operating costs.

He added that he was also informed that the bank concluded that the Sowa Town branch had limited growth potential because most of the public in Sowa were not banking with Barclays, and it lacked support from local authorities in the area.

He said it was against such backdrop that the bank decided to rationalise its branch network and closed the Sowa Town branch, leaving the Nata branch as well as more cost-effective alternative digital channels such as Internet and mobile banking to provide banking services to its customers.

Furthermore, he said Barclays Bank Botswana had indicated that it had no immediate plans to re-open the Sowa Town branch.

However, Mr Matambo said the government continues to encourage all banks to provide cost-effective and convenient access to banking services to communities such as Sowa Township.
He said banks were required to advise Bank of Botswana before closure of any place of business and accordingly inform the public.

He added that consistent with such regulatory requirements, Barclays Bank had notified its customers of the closure of the Sowa Town branch through advertorials in two widely circulated newspapers in Botswana, letters to individual customers of the branch and posters at the branch premises at least a month prior to the closure.

Nata-Gweta Member of Parliament, Mr Polson Majaga had wanted the minister to explain why the Barclays Bank Botswana Sowa Town branch was closed, and if there were any plans to reopen it.
Mr Majaga also wanted to know if there was any communication to the affected customers. Ends