Report Coverage
This report on the banking sector in Botswana covers financial institutions including banks, other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. It includes information on the state and size of the sector, regulation, developments and corporate actions. There are profiles of 23 companies including ABSA Botswana, African Banking Corporation of Botswana (trading as Banc ABC), First National Bank of Botswana, Stanbic and Standard Chartered, government-owned developmental finance institutions such as Botswana Savings Bank, National Development Bank and Botswana Development Corporation and savings and credit cooperative societies such as Maitlamo, Motswedi and Thuto.
Introduction
Botswana’s Banking industry is an increasingly important sector in terms of the supporting role it plays in the development of other sectors of the economy. This report covers financial institutions including banks, other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. Data from the central bank, the Bank of Botswana (BOB), indicates that total assets of commercial banks were P104.3bn (pula) (US$9.8bn) in 2020, growing 9% from P98.7bn (US$9.2bn) in 2019. The growth in assets was mainly driven by gross loans and advances. There are currently eight licensed commercial banks, all majority foreign-owned. Five large banks – ABSA Botswana, African Banking Corporation of Botswana (trading as Banc ABC), First National Bank of Botswana (FNBB), Stanbic and Standard Chartered – dominate the sector and accounted for 84.7% of total assets, 85.3% of total deposits and 87.5% of total loans and advances.
Strengths
• Botswana banking industry is stable and well capitalised.
• Expansion of products targeted at SMEs by commercial banks and micro-lenders.
• Good road infrastructure acts as catalyst for vehicles sales growth and motor finance.
• Government support for SMEs to get access to finance.
• Growing microlending sector can improve financial inclusion.
• Robust regulatory framework has been implemented.
• Strong presence of wholly-owned banks which have access to investment, skills, and experience of holding companies.
Weaknesses
• Two commercial banks surrendered their licences.
• Challenges for SMEs to access finance.
• Closure of branches by some banks has resulted in job losses.
• No new banks entered the market since 2013.
• Poverty and unemployment in majority section of the population.
• The banking sector is not a priority development in the National Development Plan 11.
• The unbanked rural population has limited access to finance.
Opportunities
• Short term financing opportunities for the banking sector due to government’s pandemic financial assistance recovery programmes.
• Rollout of mobile money services in rural areas.
• The growing used car market offers opportunities for lease financers.
• The number of unbanked, particularly in rural areas.
Threats
• Banks are the custodians of clients’ data and they become targets of cybercrime.
• Increase in non-performing loans as result of low economic activity.
• Risk is likely to increase due to exposure to unsecured household credit.
Outlook
Challenges brought by the coronavirus pandemic present elevated risks in the Botswana banking sector, although it has continued to be resilient, and banks reported good business performance across the sector. The rollout of an effective vaccination programme is critical to resuscitation of Botswana’s economy. The banking sector anticipates that in the medium to long term, employment and consumer spending will remain under pressure while business confidence and investment will slowly and steadily rebound upwards. Vulnerabilities and elevated risks relating to the structure and performance of the Botswana economy, notably the dependence on the mining for export earnings exposes the country to external shocks. Despite these vulnerabilities, industry analysts see potential growth in the low income and unbanked market and new opportunities resulting from technological change. The Economic Recovery and Transformation Plan offers opportunities for the banking sector to lend in priority development sectors in construction agriculture, education, and tourism.
Full Report
R 6 500.00(ZAR) estimated $371.80 (USD)*
Industry Landscape
R 4 550.00(ZAR) estimated $ 260.26 (USD)*
Historical Reports
The Banking Industry in Botswana 2020-01-17
R 1 900.00(ZAR) estimated $108.68 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | COUNTRY INFORMATION | 1 |
3. | DESCRIPTION OF THE INDUSTRY | 3 |
3.1. | Industry Value Chain | 7 |
3.2. | Geographic Position | 8 |
4. | SIZE OF THE INDUSTRY | 8 |
5. | STATE OF THE INDUSTRY | 12 |
5.1. | Local | 12 |
5.1.1. | Corporate Actions | 16 |
5.1.2. | Regulations | 16 |
5.1.3. | Enterprise Development and Social Economic Development | 18 |
5.2. | Continental | 19 |
5.3. | International | 24 |
6. | INFLUENCING FACTORS | 28 |
6.1. | Coronavirus | 28 |
6.2. | Economic Environment | 29 |
6.3. | Financial Inclusion | 30 |
6.4. | Rising Input Costs | 31 |
6.5. | Technology, Research and Development (R&D) and Innovation | 32 |
6.6. | Government Incentives and Support | 33 |
6.7. | Cybercrime | 33 |
6.8. | Environmental Concerns | 34 |
6.9. | Labour | 34 |
7. | COMPETITION | 36 |
7.1. | Barriers to Entry | 36 |
8. | SWOT ANALYSIS | 2 |
9. | OUTLOOK | 2 |
10. | INDUSTRY ASSOCIATIONS | 3 |
11. | REFERENCES | 3 |
11.1. | Publications | 3 |
11.2. Websites | 40 | |
APPENDIX 1 | 41 | |
Summary of Notable players | 41 | |
COMPANY PROFILES | 44 | |
ABSA BANK BOTSWANA LTD | 44 | |
AFRICAN BANKING CORPORATION OF BOTSWANA LTD | 48 | |
AFRITEC (PTY) LTD | 51 | |
BANK GABORONE LTD | 53 | |
BANK OF BARODA (BOTSWANA) LTD | 56 | |
BANK OF BOTSWANA | 58 | |
BANK SBI BOTSWANA LTD | 61 | |
BBS LTD | 63 | |
BOTSWANA DEVELOPMENT CORPORATION LTD | 66 | |
BOTSWANA HOUSING CORPORATION | 71 | |
BOTSWANA SAVINGS BANK | 74 | |
CITIZEN ENTREPRENEURIAL DEVELOPMENT AGENCY | 77 | |
FIRST CAPITAL BANK BOTSWANA LTD | 80 | |
FIRST NATIONAL BANK OF BOTSWANA LTD | 83 | |
FIRSTCRED LTD | 88 | |
LETSHEGO FINANCIAL SERVICES (PTY) LTD | 91 | |
MAITLAMO SAVINGS AND CREDIT COOPERATIVE SOCIETY LTD | 94 | |
MONEY QUEST INVESTMENT (PTY) LTD | 96 | |
MOTSWEDI SAVINGS AND CREDIT CO-OPERATIVE SOCIETY | 99 | |
NATIONAL DEVELOPMENT BANK | 101 | |
STANBIC BANK BOTSWANA LTD | 104 | |
STANDARD CHARTERED BANK BOTSWANA LTD | 108 | |
THUTO SACCOS LTD | 112 |