19 Aug 2021

Member of Parliament for Lobatse, Dr Thapelo Matsheka, has hailed the Credit Information Bill of 2021 as a progressive law that intends to improve the financial services sector.

Contributing to the debate on the bill on Wednesday, Dr Matsheka said the bill would ensure adherence and proper regulation of the financial services sector, especially for data providers and credit bureaux.

However, he regretted that only a few Batswana participated in the financial services sector hence should be encouraged to tap into opportunities such business offered.

In addition, he observed that the envisaged law was meant to rehabilitate instead of punishing perennial debtors, arguing that it would also protect customers and enable them to file complaints using legal instruments in place.

He further stated that the law was also meant to minimise over indebtedness. Kgalagadi North MP, Ms Talita Monnakgotla, also supported the bill, noting that the proposed law was important in that it would give credence to properly registered credit registered bureaux besides regulation of their operations by Bank of Botswana.

She also said it would provide for credit reporting systems, which she stated was good for the economy. Maun East MP, Mr Goretetse Kekgonegile said in principle the proposed bill was welcome but decried lack of adequate information given that many people could not easily access loans.

He said Cap 46:08 that stipulated who should be licensed had potential open flood gates given that anyone could be licensed.

Mr Kekgonegile said Batswana should be given priority in the business and called for proper handling of consumer information.

Molepolole North MP, Mr Oabile Regoeng also supported the bill, arguing that Batswana would benefit from the financial sector which had always been in the hands of foreigners.

Good Hope-Mabule MP, Mr Eric Molale said the law was overdue. He regretted that credit information systems were abused in that some were retributionists.

He said previously, the risk factors were arbitrary, and people were not assessed fairly and disadvantaged with arbitrariness at play due to lack of guiding principles.

Mr Molale said that the law was also important to control indebtedness because people ended up poor and un-credit worthy. Mahalapye West MP, Mr David Tshere was happy that Clause 21 protected Batswana because it provided for non-disclosure of information.

Clause 54 which provides for cross border consumer information sharing was equally important in protecting Batswana from foreign predators.

Maun West MP, Mr Dumelang Saleshando also supported the bill, stating that it would guard against irresponsible lending which impoverished Batswana.

Francistown South MP, Mr Wynter Mmolotsi supported the bill, but said Clause 4 should clarify as to who should benefit under citizen inclusion, and that the business should be reserved for citizen-owned companies only.

Furthermore, Mr Mmolotsi commended the bill for empowering Batswana to be credit worthy. In response, Minister of Finance and Economic Development, Ms Peggy Serame said the law alone was not enough, stating that intense public education was more vital.

She decried the low financial literacy rate. Currently, Minister Serame said, there were only three foreign credit information bureaux, hence it was difficult to confine the business to Batswana only.

The minister said knowledge sharing and partnerships were important in the credit space. She also indicated that the proposed law was important because it would control the flow of information in the credit space.

There was concern that some people were unfairly blacklisted hence the need for guidelines on the type of information that should be passed to a third party. The Credit Information Bill passed second reading. ENDS