The Bank of Botswana (BoB) is advancing initiatives to modernise the country’s payment systems, with digital payments expected to support business growth, improve transaction efficiency and strengthen economic diversification, particularly in tourism-dependent economies such as Maun.

Speaking at an economic briefing for the Maun business community in Maun on October 26, BoB Governor, Mr Lesego Moseki said efficient and accessible payment systems were important in helping businesses navigate a challenging economic environment and unlock new opportunities.

He highlighted the bank’s work on the National Retail Payments Switch and other digital payment initiatives aimed at improving interoperability, facilitating government revenue collection and strengthening connections between payment service providers.

“For Maun, where tourism plays a significant role in the local economy, accessible and reliable payment systems could also help businesses reach a wider market while supporting links between tourism operators, local suppliers and other enterprises,” he said.

Mr Moseki noted that businesses across the country were operating under pressure from weak global diamond demand, geopolitical tensions, changing trade arrangements and rising operating costs.

He said the aforementioned challenges have affected consumer demand, business confidence and cash flow, while lower mineral revenues had placed pressure on government finances and foreign exchange reserves.

Mr Moseki said economic reforms should translate into tangible improvements for businesses and citizens, including reduced administrative delays, faster approvals, lower operating costs and better opportunities.

He identified tourism and retail trade as important areas through which, Botswana could broaden its economic base beyond traditional sources of revenue.

“It is important to strengthen connections between tourism businesses and local producers, including farmers, artists, transport operators and entertainers, to ensure that tourism expenditure generate wider benefits within the domestic economy,” he said.

Mr Moseki said improving payment infrastructure was one way of supporting connections between tourism and local producers, particularly as businesses sought more efficient and affordable ways to receive payments and manage transactions.

He also underscored the need for financial services to respond to the realities of different businesses, noting that tourism operators often dealt with seasonal income, retailers require working capital, and small suppliers could struggle to secure financing despite having confirmed orders.

He called for financing solutions that reflected their needs, supported by reliable business information, sound credit assessment and responsible lending practices.

Member of Parliament for Maun West, Mr Caterpillar Hikuama, said the briefing came at an important time when businesses had to navigate both national economic developments and global pressures.

He said Maun’s economy, driven by tourism and hospitality alongside agriculture and aviation, required economic insights that reflected the region’s distinct circumstances.

Mr Hikuama observed that monetary policy and exchange rate movements were not merely technical matters, as they directly influenced borrowing costs, cash flow, import and export competitiveness and consumer demand.

He said Maun’s reliance on international tourism and regional trade made the local economy particularly sensitive to exchange rate movements and foreign exchange availability.

Moreover, Mr Hikuama called for a banking sector that went beyond stability to ensure greater accessibility, saying financial institutions should align credit facilities and risk assessments with the realities faced by local businesses. “This included supporting tourism operators, managing seasonal business cycles and farmers investing in infrastructure, while ensuring that financial stability translated into accessible banking services, affordable credit and modern payment systems,” said Mr Hikuama.

He said dialogue between policymakers and the business community was essential to ensuring that economic policies were grounded in local realities and contributed to citizen empowerment.  ENDS