16 Jul 2013

Barclays Bank Botswana has introduced a motshelo account to encourage people who come together with a common goal of saving. The account is a traditional concept where people pool household savings for future use.

In a recent interview, Barclays spokesperson, Mr Sakaiyo Baitshepi explained that they introduced this account in September 2012 in recognition of group savers and to cater for the unbanked market.

He said since banks did not cater for group savers, Barclays Bank identified the need to open such an account. Moreover, Mr Baitshepi said the idea captured the essence of Motshelo groups which fostered social relations while working towards a common goal of saving with the intention to grow interest. 

He said the service would improve the lives of Batswana by inspiring them to save as well as promoting financial inclusion and facilitating development economically and socially amongst multiple people.

Through the motshelo account, the bank won the Barclays Citizenship Award at an event held in London  last month, he said.

“The Barclays Citizenship Awards recognises and celebrates colleagues for their amazing work in their local communities all around the world. The winners demonstrate passion and commitment, and take an innovative approach to addressing local issues and needs,” Mr Baitshepi added.

Botswana Unified Revenue Services (BURS) revenue manager (technical services), Ms Sinah Keipiditse said according to the tax amendment law of 2012, banks had been given total control over partnership accounts. She explained that in a partnership account, if the annual interest amounted to more than P7 800, it was taxed, and if per month interest was more than P650, it would be taxed.

She said if clients were overtaxed by the banks, they could go to BURS for correction or reconciliation of their documents.She said the motshelo account has helped BURS because it had been difficult to locate people who were earning taxable amounts.

Through interlinking of systems between BURS and the banks, they would be able to retrieve the latest information on accounts and when doing risk analysis their focus would be on those on partnership accounts. ENDS