28 Oct 2025

Financial services regulations should protect consumers to ensure sustainable and resilient participation in economic activity.

This calls for more regulation on the non-banking financial institutions which exploit consumers and contribute to rising household debts.

Contributing to the debate on the financial and digitalisation chapter of the Draft National Development Plan 12 (NDP 12) on Monday, Bobirwa MP, Mr Taolo Lucas implored government to establish regulations that properly govern and monitor operations of non-banking financial institutions to ensure consumers were protected.

He said the high rate of household debts was exacerbated by these institutions that did not promote responsible lending. MP Lucas further decried exorbitant and unreasonable interest rates and bank charges, which he said impoverished Batswana.

He urged the government to review legislation regulating insurance companies to protect consumers from being robbed. While he underscored the need to provide financial counselling, Mr Lucas also advised banks to improve their policies to enable more people to buy immovable properties as long term investments.

“As it is, it is easier to buy a car than a plot or house, hence banks should review their processes to make it easier for people to buy immovable property. The Government Employees Motor Vehicle and Residential Property Advance Scheme should also be reviewed to allow government employees to buy business properties for investments,” he said.

Mmadinare MP, Mr Ketlhalefile Motshegwa said while access to affordable financing was essential for economic diversification and growth, it was equally important to review the banking system to cater for the current economic circumstances.

He noted that digitalisation of the economy would improve systems for generating income for local governments by enhancing payments, digital advertising, accessing online markets and digital permits among others.

Additionally, he noted that attaining economic independence called for regional integration to enable economies of scales and strengthening Africa’s bargaining power in the global markets.

Gaborone North MP, Mr Shawn Ntlhaile underscored the need to prioritise citizenry financial health through an inclusive and accessible financial ecosystem, particularly to the marginalised communities. He said there was need for affordable, competitive and effective financial access for all citizens across all regions of the country. 

“This reflects recognition that pursuing broad-based, cost effective access to financial services is a human right. Promoting financial access for the undeserved and low income, non-salaried cohorts, SMMEs and other marginalised groups in our society is an essential element of an inclusive economy, therefore this NDP 12 should prioritise financial health as a key policy objective,” he noted.

He further said the banking licensing policy should provide for every citizen to have a savings account with no bank charges. Mr Ntlhaile also said access to credit should come with reasonable costs and payment terms, as well as insurance towards covering risks associated with death, disability and hospitalisation among other benefits.

While acknowledging a few digital services available for Batswana, he said there was need to intensify access to digital payments for all citizens across the country.

Moshupa/ Manyana MP, Mr Karabo Gare called for policies that protected the consumers from losing their properties owing to relapse in payments of loans. He said there should be a provision for flexible payment arrangements when the consumer defaults in their payments.

Mr Gare also noted that while the effectiveness of the financial sector was determined by policies, there was need to accelerate financial inclusiveness and improve access to financial services, particularly to rural communities.

He said as a nation that strives to promote entrepreneurship, it was important to facilitate affordable and timely access of financial services to SMMEs. ENDS