27 Mar 2017

The entry of Stanbic Bank into Botswana financial sector should be placed in the context of the major financial sector reform undertaken in the early 1990s, says Bank of Botswana governor, Mr Moses Pelaelo.
He said these reforms were informed by the Botswana Financial Policies for Diversified Growth report derived from a study by government with the assistance of the World Bank.
Speaking at the 25th anniversary celebrations of Stanbic Bank in Gaborone on Thursday, Mr Pelaelo said the key elements of these reforms included deregulation of interest rates, adoption and use of indirect instruments of monetary policy, introduction of Bank of Botswana Certificates to influence liquidity in the banking system and manage short-term interest rates, among other.
He said there were only three commercial banks operating in Botswana in 1991, two additional commercial banks were licensed and in 1992 the Bank of Botswana granted UnionBank Botswana Limited, a subsidiary of Standard Bank of South Africa, a banking license, making it the sixth licensed commercial bank in the country.
The governor said shortly thereafter, in the same year, UnionBank merged with ANZ Grindlays, each with an initial capital of P10 million, to form Stanbic Bank, which is now ranked fourth among the 10 commercial banks operating in the country in terms of staffing, branch network, capital and deposit liabilities.
He said from a modest beginning, with only 24 employees in 1993, and currently employing over 600 staff members across 10 branches, Stanbic is serving an excess of 80 000 retail and business customers, with an asset base of P12 billion from as little as P138 million in 1993. Mr Pelaelo said the bank had also consistently made profits, with its net income after tax increasing from P2.2 million in 1993 to P192 million in 2016 and at present, Stanbic Bank is regarded as one of the systemically important domestic banks operating in Botswana, with a 15 per cent market share of total banking industry assets and deposits. 
He said the bank offered a wide range of traditional and innovative corporate, retail and investment products and services including, more recently, like some of its peers, the introduction of on-line and mobile banking services.
The governor said these technology-based platforms, products and services would enable the bank to continue to be a significant player in the industry and broader economy, as well as adapt to the emergence of financial technology (Fintech) operators for the benefit of customers and the economy at large.
He said another highlight was the evolution of leadership and governance at Stanbic Bank and notably, the chief executive officer position was localised in 2008 with the appointment of Mr Leina Gabaraane, while six out od 10 board member and 80 per cent of the senior management staff of the bank are citizens.
Mr Pelaelo said these are significant developments in two respects. They reflect the attention given to staff development and enhancement of relevant skills across the spectrum of banking operations and the alignment of leadership, management and operational processes to the local context, in order to better serve the domestic economy.
He stated that based on the latest statutory returns submitted monthly and quarterly to Bank of Botswana, the bank is solvent, profitable, well governed and prudently run, in the main, by Batswana.   
For his part, Mr Gabaraane said they would continue to be guided by the very ambition that marked their birth as a business, and that they did so with enhanced focus and determination at every turn.
“Stanbic Bank is committed to enhancing the lives of the community it operates in and it is this inherent focus on people and passion that drives our operations, for we believe Africa is our home and we drive her growth. Thus, as we thank each and every person or entity that has helped bring us to where we are today, we also commemorate our silver jubilee with them. We dedicate and share it with all those who have contributed to our evolving narrative, and we thank them, wholeheartedly, for being a part of ours,” concluded Mr Gabaraane. ENDS