Access to Financial Services in Botswana

This paper is one of a series of four, each of which focuses on access to financial services in one of the BNLS (Botswana, Namibia, Lesotho, Swaziland) countries of the Southern African Customs Union. The paper includes:

• Banking sector including commercial banks, investment and merchant banks, statutory bank building societies;
• Contractual savings institutions such as pension and insurance providers;
• Non-bank financial services providers such as Microlenders, and non governmental organizations;
• Money and capital markets.

The authors conclude that Botswana is in a better position than the other BLNS countries as a larger proportion of people have access to the various forms of financial services. However, they express concern about the ability of the financial sector in optimally facilitating the development of the local economy, as:

• Government initiatives in the current form may not be sustainable in the long term;
• Cost distortions created by subsidies may adversely affect private sector participation in the economy;
• Microfinance initiatives are unregulated and may lead to exploitation of clients.