06 Apr 2022

There is need to intensify public education among Batswana on the importance of saving and financial prudence, Minister of Finance and Economic Development Ms Peggy Serame has said.

Officially opening the new Botswana Savings Bank (BSB) branch in Maun on April 5 the minister said saving did not necessarily mean large amounts of money as even small sums could be saved.

Ms Serame said Batswana were known to invest through motshelo partnerships, therefore encouraged that this saving practice should be taken seriously and be expanded so that shareholders eventually open business accounts.

The minister thanked BSB for being the only savings bank in Botswana and for its’ unwavering commitment in cultivating the habit of saving.

She said BSB had affordable financial products tailored for individuals and business community extending to rural areas.

Ms Serame emphasised that financial inclusion was critical in the modern day so as to reach every Motswana in every part of the country.

She highlighted that Botswana like other countries was moving towards a digital and knowledge based economy.

“We don’t have to go to the bank physically to access services nowadays because services can be accessed at the comfort of one’s home and we must take advantage of such technology advancement,’’ she noted.

Ms Serame assured that government continued to provide the necessary regulatory framework to enable development and deepening of the financial sector.

This, she said included the impending new regulations and review of existing legislation such as the Banking Act that would allow Batswana to compete in the banking sector.

She said currently, the Banking Act was unfavourable for Botswana to have an indigenous bank rendering Batswana ineligible to own a Botswana bank.

BSB CEO, Mr Nixon Marumoloa reiterated the importance of financial literacy, saying it was important for every Motswana to be knowledgeable on how to use money efficiently.

He said as a wholly government owned bank, BSB conducted business according to sound commercial principles.

“As a bank we should not run at a loss especially since government gave us a mandate to be deposit takers, we are required to operate at the highest level of principle.”

Mr Marumoloa said BSB currently stood at P2.7 billion deposits, adding that most of their clientele were small businesses owned by Batswana, landboards and councils.

He highlighted that BSB celebrated 30 years in existence this year with five standalone branches in Gaborone, Francistown, Molepolole and Palapye, and four co-branded branches with Botswana Post at Rail Park in Gaborone, Mahalapye, Hukuntsi and Serowe and two smart branches in Gumare and Kanye.

The CEO revealed that BSB would introduce cellphone and online banking by June this year to match the standard of other banks.

For her part, Batawana regent Kgosi Kealetile Moremi thanked BSB for expanding its footprint to Maun,  adding that this was an opportunity for fish businesses, small stock and basket weavers in Ngamiland to open accounts with BSB.

Also underscoring the importance of financial literacy, she citing that during the Foot and Mouth scourge in Ngamiland in the 90s, some farmers who  were compensated squandered all the money because of lack of financial literacy.

Kgosi Moremi said the new bank would also offer employment for the residents  of Maun and peripheral villages.ENDS