03 Dec 2023

 First National Bank of Botswana (FNBB) and Morupule Coal Mine (MCM) have launched  a Memorandum of Understanding  (MoU) on Wednesday.

The two entities signed a MoU a year ago aimed at bolstering local businesses under the Citizen Economic Empowerment (CEEP) and the partnership will avail P500 million in order to facilitate business.

Speaking at the launch of the MoU, FNBB head of commercial lending, Mr Tshepo Morris said the collaboration emphasised the two companies’ shared vision to bolster economic development, empower local businesses, and drive meaningful change in Palapye and surrounding areas.

He said FNBB’s partnership with Morupule Coal Mine under the CEEP is not just a business agreement but a deliberate effort to advance the socio-economic landscape of Botswana. Mr Morris said the partnership signifies more than just a business collaboration and it represents a real commitment to the people of Botswana.

Through this partnership, he said, they aim to provide comprehensive banking solutions and access to funding for Morupule Coal Mine contractors. 

“By doing so, we contribute to business growth, expansion, and the creation of meaningful job opportunities for our fellow citizens,” he said.

Mr Morris said FNBB recognised the vital role that Small, Medium, and Micro Enterprises (SMMEs) play in the economic fabric of the nation. 

Therefore, he said their support for SMMEs is not just a strategy but a vital part of their corporate ethos. He stated that they had implemented various programmes and initiatives to assist SMMEs, providing them with access to credit, business development support, and mentorship programmes.

“These initiatives are designed to empower local businesses and contribute significantly to economic growth,” he said. He stated that the bank was actively engaged in increasing local procurement, particularly in the mining sector and it understood the importance of supporting local enterprises in the supply value chain. Mr Morris said memorandums of agreements have been signed with large corporates, including MCM, to provide working capital to these enterprises. 

He said this approach not only stimulates local economic growth but also creates a ripple effect, driving a more resilient and self-sufficient business environment.

Further, he said the partnership signifies more than just a business collaboration, as it represents a real commitment to the people of Botswana. MCM head of commercial, Mr Jonathan Nhovo labelled the partnership a commitment to unlocking opportunities and creating a pathway to financial prosperity for citizen-owned businesses. He said MCM was committed to being a partner of choice in the global coal transition and the partnerships that MCM envisage,  are not for handouts but real impactful activities and outcomes.

Nhovo said MCM’s ambition was to have 50 per cent of its spend going to citizen companies and supporting 3000 jobs by 2027. 

“Indications are this target will be reviewed upward so those tasked with this cause keep earning their money,” he said.

He said the partnership would enhance financial literacy, provide access to bespoke financial solutions and empower individuals to build a more secure and sustainable future. ENDS