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BBS launches Palapye branch

Publishing Date : 04 December, 2018


Botswana Building Society (BBS) this week launched its tenth branch at the Central District village of Palapye. The bank has offices in Francistown, Gaborone, Kasane, Lobatse, Maun, Serowe, and  Selibe Phikwe.

Governor of Bank of Botswana Moses Pelaelo who officially launched the branch said Palapye is evidently one of the fastest growing villages in the country. He said growth, in this instance, is a function of response to economic opportunities, including actual and potential demand for services. “There is greater potential to respond to economic opportunities, drive operational excellence and capacity to meet diverse customer needs; thus enhance the value of services to customers, as well as prospects for sustainable returns and growth,” said Pelaelo.

BBS is an offshoot of United Building Society of South Africa which started operations in Botswana in 1971 and it was subsequently transformed to Botswana Building Society in December 1976, with a primary mandate to provide housing finance against immovable urban property.  It later extended in 1986 to cover rural areas and had a facility of commercial loans. The latest transformation from a friendly mutual society to a public limited company, incorporated in April 2018.

BBS  recently placed its shares on the Serala platform, which is for unlisted equities, at the Botswana Stock Exchange and has shares of over P564 million and the development provides yet another opportunity for ownership and strategic control of a home-grown, prudently managed and profitable financial institution by Batswana.The assets of Botswana Building Society have increased at an average annual rate of 13.9 percent. This compares with an annual growth rate of 16.2 percent for commercial banks and 12.3 percent average annual increase in nominal GDP.  According to Pelaelo, this suggests a meaningful contribution to the economic and financial development of the country.

Dissecting further, the average annual growth in residential mortgage loans was 14.2 percent, compared to 21.8 percent for commercial banks. Another interesting comparison is that outstanding residential mortgages by Botswana Building Society as at the end of June 2018 amounted to P2.9 billion, constituting 31 percent of the total of P9.3 billion for the commercial banks, which for the individual banks, ranged from a smallest value of P2.3 million to the largest amount of P3.2 billion.

Pelaelo thanked BBS for making efforts to enhance its service offering and therefore have a potentially greater impact on society and the economy. The Bank of Botswana Governor implored Palapye residents and the surrounding areas  to use BBS and other financial institutions in their area, to save; to access and use credit wisely, for the benefit of their families and sustainable development of the country.



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