14 Aug 2017

National Development Bank (NDB) chief executive officer, Ms Lerato Morapedi says the bank has invested P118 million in Palapye and surrounding areas.

Speaking at a breakfast session dedicated for customers, she said NDB has over the years made significant investments to support business ventures within the region.

She said the money had been invested in various sectors like agriculture which got 64 per cent, properties 28 per cent while the remaining percentage was spread in other sectors such as retail and commerce as well as human capital development.

Ms Morapedi said their establishment in Palapye, which was focused at providing prompt service to customers, had gone a long way in contributing to the economic growth of the region as well as employment creation.

She said she believed that a lot more could be done given the opportunities available within the area if they continue with their partnership.

Ms Morapedi told the business community that both businesses and customers had been directly or indirectly affected, as the banking industry had been going through a challenging phase characterised by unfavourable market and economic conditions, declining interest rates, depressed property markets, and a slow recovering economy which affected the performance of most banks.

She said NDB was not an exception, and that they had to focus and support the ailing funded projects and scaling down investing on new business ventures. She noted that the loans during that period were not well serviced, and that most of their customers were not funded as desired.

Ms Morapedi appreciated the understanding and loyalty during the periods, adding that it showed that they both appreciated the importance of a long-term sustainable business and having a bank with low non-performing loans, particularly that they were preparing for privatisation.

She said during the period, the bank’s financial performance was adversely affected, and that some losses were encountered from the 2013/14 financial year to date. She, however, noted that all key stakeholders were kept abreast on the development to appreciate the journey the bank was going through.

Ms Morapedi said they also tackled the non-performing loans which affected the financial performance of the bank. She added that tighter controls had been put in place even though it took time to recover from foreclosed projects.

She appreciated the loyal and good paying customers who had honoured their agreements despite financial losses. She added that the bank had been sustainable, and that it was the type of partnership they wanted from all their customers.

Ms Morapedi assured the business community about their operations, noting that they saw opportunities for business growth in Palapye and surrounding areas. She said the interaction would allow them to express the bank’s gratitude towards their support and commitment to the bank.

She also said it would open an opportunity for feedback on how they had been serving them and areas to be improved as well as share with the wider Palapye business community, civic society and potential customers their products and services offered which could be relevant for them.

“Palapye is regarded as the most convenient stopover for the north-south rail and road routes for years, this emerging town has also been seen as one of the future industrial hubs of Botswana, and this has been prompted by its geographical position as well as the boom that was taking place in the area like BIUST, police station and Morupule power station.

Ms Morapedi said the rebranding and refurbishment of their branches had provided a face-lift to the Palapye branch, adding that the high number of regular customer feedback and response had grown from 78 per cent to 92 per cent. Ends