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The Banking Sector in Botswana
BY Louise Mitchell
Botswana
17 January 2020
R 14 400.00 (ZAR)  
estimated $ 872.99 (USD) *
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The Banking Sector in Botswana


This report on Botswana’s financial institutions include banks, other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. The country has ten commercial banks that are all foreign-owned and four are listed on the Botswana Stock Exchange. Non-bank finance institutions include microlenders, pawnshops, and finance and leasing companies. With ten commercial banks, just over 500 ATMs and less than 200 branches serving an adult population of about 1.5 million people, most analysts see opportunity for expansion.


Steady Performance


Despite these opportunities, no new banks have entered the sector since 2012, and commentators have indicated that outdated regulation and the dominance of foreign-owned commercial banks are factors that potentially keep new entrants out. The microlending sector, on the other hand, is growing and has the potential to increase financial inclusion. Large commercial banks continue to introduce more technologies and are moving towards branchless banking. Latest available industry statistics to 2018 reflect a stable, adequately-capitalised banking sector which experienced growing customer deposits and improved profitability.


Lease Financing


Botswana has a developed auto market with a high consumer purchasing power and good quality road infrastructure. Increased personal consumption is expected to drive growth in car sales. Growth is also expected in commercial vehicle sales as government promotes increased spending on major capital development projects.


Report Coverage


This report on the banking industry in Botswana includes information on the state and size of the industry and the factors that influence it including economic conditions, regulation and corporate actions. There are comprehensive profiles of 19 companies in the sector including Standard Chartered, which launched Botswana’s first digital retail bank in 2019. Other profiles include BBS, which listed on the over the counter Serala exchange in 2018, Letshego, the leading microlender and development institutions such as Botswana Development Corporation and the National Development Bank.


Page
1. INTRODUCTION 4
2. COUNTRY INFORMATION 4
3. DESCRIPTION OF THE INDUSTRY 5
3.1. Industry Value Chain 11
3.2. Geographic Position 12
4. SIZE OF THE INDUSTRY 13
5. STATE OF THE INDUSTRY 17
5.1. Local 17
5.1.1. Corporate Actions 21
5.1.2. Regulations 21
5.1.3. Enterprise Development and Social Economic Development 23
5.2. Continental 24
5.3. International 30
6. INFLUENCING FACTORS 33
6.1. Economic Environment 33
6.2. Government Initiatives 33
6.3. Financial Inclusion 34
6.4. HIV/AIDS 35
6.5. Operating Costs 35
6.6. Information Technology (IT), Research & Development and Innovation 36
6.7. Labour 37
6.8. Environmental, Social and Governance (ESG) Factors 38
6.9. Cybercrime 39
7. COMPETITION 40
7.1. Barriers to Entry 40
8. SWOT ANALYSIS 41
9. OUTLOOK 42
10. INDUSTRY ASSOCIATIONS 42
11. REFERENCES 43
11.1. Publications 43
11.2. Websites 43
APPENDIX 1 45
Summary of Notable players 45
COMPANY PROFILES 48
AFRICAN BANKING CORPORATION OF BOTSWANA LTD 48
BANK GABORONE LTD 52
BANK OF BARODA (BOTSWANA) LTD 54
BANK OF BOTSWANA 56
BANK SBI BOTSWANA LTD 58
BARCLAYS BANK OF BOTSWANA LTD 60
BBS LTD 64
BOTSWANA DEVELOPMENT CORPORATION LTD 67
BOTSWANA HOUSING CORPORATION 72
BOTSWANA SAVINGS BANK 75
CITIZEN ENTREPRENEURIAL DEVELOPMENT AGENCY 78
FIRST CAPITAL BANK LTD 81
FIRST NATIONAL BANK OF BOTSWANA LTD 84
GETBUCKS LTD 89
LETSHEGO FINANCIAL SERVICES (PTY) LTD 91
MAITLAMO SAVINGS AND CREDIT COOPERATIVE SOCIETY LTD 93
MOTSWEDI SAVINGS AND CREDIT CO-OPERATIVE SOCIETY 95
NATIONAL DEVELOPMENT BANK 97
STANBIC BANK BOTSWANA LTD 100
STANDARD CHARTERED BANK BOTSWANA LTD 104