09 Jul 2023

Members of Parliament  resumed the debate on the Non-Bank Financial Institutions (NBFIs) Regulatory Authority Bill (Bill No. 2 of 2023), which seeks to provide for the continuation of the establishment of the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), as well as for its powers and functions.

Presenting the bill last Thursday July 6, Minister of Finance, Ms Peggy Serame explained that continuation of NBFI would help improve the fairness, efficiency and orderliness of the NBFIs sector and the stability of the financial system.

The minister said the objective of the bill was to repeal and re-enact with amendments the NBFI Act. Contributing to the debate, Vice President and Boteti West MP, Mr Slumber Tsogwane thanked the minister for coming up with a sector specific legislation, stressing that he supported the bill as it would help protect and grow the NBFIs sector, adding that it would also contribute towards government’s economic diversification drive.

Mr Tsogwane also said the bill came at the right time when government had developed a two-year transitional National Development Plan to grow the country’s economy to a high-income status by 2036. He said it required a change and alignment of certain regulations to be in line with international best practices.

Member of Parliament for Good Hope/Mabule, Mr Eric Molale also supported the bill, saying it showed government’s commitment to protect Batswana from micro lenders who were indebting people. 

Through the bill, he said government would ensure there was proper due diligence so that customers were not burdened with debts they would eventually default on.

Kanye South MP, Dr Lemogang Kwape supported the bill and encouraged the minister to ensure its implementation for Batswana to reap the benefits.  

Mahalapye East MP, Mr Yandani Boko also supported the bill, stressing that there was need to come up with tough legislation on credit control to avert the unregulated irrational rates that drove people into serious debts and poverty, and for proper financial education among Batswana.

Molepolole North MP, Mr Oabile Regoeng also shared the same sentiments that the bill would shield Batswana from being overwhelmed by borrowing.

Maun East MP, Mr Goretetse Kekgonegile also supported the Bill, saying it would help promote financial fairness, by protecting customers, as well as the poor as the cost of living was too high.  

Responding to the debates, Minister Serame thanked the legislatures for the overwhelming support, explaining that the proposed amendments seek to provide and improve on the definitions in the Act, so as to align the definitions with international requirements and best practice.

The Bill amendments, she said would also enhance the regulatory capacity of the Authority by giving it the powers to give directions, enforce undertakings made and ensure accountability of Key Persons or Controllers of NBFIs, amongst other things.

Additionally, she said the amendments also seek to enhance corporate governance in the non-bank financial sector by empowering the Regulatory Authority to provide for reporting requirements, to develop Administrative Rules and to provide guidance on the appointment and removal of Key Persons or Controllers.

Furthermore, the minister said the amendments also seek to provide for matters relating to compromises, arrangements, amalgamations, statutory management and winding up of NBFIs in order to ensure standardisation and fairness and provide for the regulation of conglomerates in line with the needs occasioned by the growth and the development of the non-bank financial sector. Ends