23 May 2016

Majority of people lack the culture of deferring consumption for future usage hence majority retire heavily indebted.

 Botswana Housing Corporation (BHC) chief executive officer, Mr Reginald Motswaiso said recently, during the launch of Botswana Association of Tribal Land Authorities (BATLA) Group Scheme investment, which is a collaboration between BATLA and African Alliance.

 He said research had shown that world over, people did not save for future use and Batswana were not spared from this excessive consumption.

 Therefore he said the initiative by BATLA and African Alliance could go a long way in fostering a culture for saving for BATLA members.

 He said as part of the scheme, which would have members contributing as little as P100 per month towards the group scheme, African Alliance will also tour all land boards and Ministry of Lands and Housing offices across the country to sell the initiative.

 Mr Motswaiso said the move would also enhance financial literacy for members and encourage them to invest.

 “It is my wish that this initiative will bring about a paradigm shift to how households manage their personal finances,” he added.

 African Alliance Botswana head of Distribution and Client Service, Mr Moarabi Mariri said African Alliance wanted to improve financial literacy in the country.

 He said experience had shown that in most advice slips, money went towards repaying personal loans.

 He said most people took personal loans and by the time they retired from service, they still had to repay loans and they had to repay with their retirement package.

 In addition he said due to unemployment rate world over, parents were forced to continue to provide for their families even after their retirement, hence the need to invest.

 Mr Mariri said they had chosen a minimum of P100 investment because most Batswana could afford to invest that amount.

 Therefore, he called on employees to take advantage of the opportunity offered by African Alliance saying they were by far the best in the market.

 BATLA president, Mr Jenkins Hiri said BATLA staff members welfare was a priority to the organisation, hence the group scheme.

 Further Mr Hiri said he was hopeful that their relationship with African Alliance would be a fruitful and long-term relationship. ENDS