18 Apr 2020

Bankers Association of Botswana chairperson, Ms Keabetswe Pheko-Moshagane says local banks play a critical role in the economy of the country and therefore it is important for them to formulate a framework best suited to support the nation accordingly.

Addressing the nation on April 18 on the strategy taken by the local bankers towards the fight against COVID-19 pandemic, Ms Pheko-Moshagane, who is also ABSA Bank Botswana CEO, said fighting the coronavirus would need a collective effort.

“The time is now for the nation to stand together,” said Ms Pheko–Moshagane.

She said the local banks through Bankers Association had measures in place to assist customers.

In an endeavor to address the COVID-19 pandemic, Ms Pheko-Moshagane said ABSA Bank Botswana had donated P1.5 million to the COVID-19 Relief Fund.

She said another P500 000 would fund other government initiatives aimed at uplifting societal livelihoods.

On other initiatives aimed at cushioning their customers during the scourge, Ms Pheko-Moshagane said customers with mortgage, car and other loans would be given a three-month repayment holiday.

She said the loan repayment break would be reviewed after three months depending on the situation relating to the pandemic.

Ms Pheko-Moshagane said other bank services like Internet banking; mobile banking and ATM withdrawals would be done for free.

Ms Pheko-Moshagane said other banking services like ATM deposits, buying of airtime, payment transfer at ATM and cash at till points would be discounted by 25 per cent.

She added that customers would be offered virtual assistance for 24 hours.

“Our customers will also register for free to use our services for three months effective April 2020,” said Ms Pheko-Moshagane. 

She added that ABSA Bank Botswana would continue to offer their customers in the business industry overdraft of working capital to sustain their activities.

Meanwhile, Stanbic Bank CEO, Mr Sam Minta said the COVID-19 pandemic had brought unprecedented times in the existence of humankind.

In addressing government’s appeal for the private sector to contribute in fighting the COVID-19 pandemic, Mr Minta said Stanbic Bank had donated P1 million to the COVID-19 Relief Fund.

He also said another US$25 000 would go towards funding critical supplies aimed at supporting vulnerable groups of the society.

Mr Minta said no one was immune of the coronavirus and therefore the fight against the COVID-19 pandemic was for all.

Mr Minta said major sectors of the economy such as the mining; manufacturing and tourism sectors were greatly affected by the pandemic.

He said it was clear that all sectors of the economy were affected.

As a result of the blow of the primary and major drivers of the world economy, Mr Minta said Small, Medium and Micro Enterprises would ultimately take a heavy blow as a result.

As a result of the COVID-19 pandemic, he said 20 per cent of their employees were given a break, 40 per cent working from home, while 40 per cent were front liners and therefore had to report to their various working posts.

As such, Mr Minta has advised all their customers to take advantage of the digital platforms to access their services. “Please go digital and stay home,” said Mr Minta.

Just like others banks, Mr Minta said Stanbic Bank had engaged a moratorium on loan payment for three months.

He also added that loan repayments plans would also be restructured as per requests of individual customers. 

Mr Minta added that digital banking service would be reduced by 25 per cent while other banking services will be done without any charge.

During the trying time, Mr Minta said the bank would actively engage with its customers through digital platforms.

He also said a credit guarantee scheme was in progress to assist small businesses.

Mr Minta has appealed to the nation at large to take advantage of the challenging platform to change positively with the hope that the COVID-19 pandemic would be overcome.

Mr Minta also observed that the COVID-19 pandemic and other similar global disasters likely to strike in future would put the nation under pressure.

However, Mr Minta observed that key lessons would be learnt from the disaster and therefore the nation must rise much stronger than it was in the past.

He appealed to government to provide an enabling environment for the private sector to grow and prepare the nation for such pandemics in the future. ENDS