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Stanbic Bank Botswana dedicates 25 years of moving forward to valued stakeholders

Stanbic Bank Botswana welcomed valued stakeholders to an intimate gala dinner to commemorate its silver jubilee – 25 years since first opening its doors to Batswana.

Held at Gaborone International Convention Centre (GICC) on the 23rd of March 2017, the engagement served as a veritable tribute to the countless number of staff, customers, partners and various stakeholders who have contributed to the bank’s increasingly strong narrative and legacy over the years.

Present on the evening were faces who have been a part of Stanbic Bank through the decades in many a shape and form, from its six long serving employees, Mr Richard Flattery (First Stanbic Bank Branch Manager) to key clientele.  Said Stanbic Bank Botswana Chief Executive, Mr. Leina Gabaraane, “25 years of having our doors open to Batswana means 25 years of supporting individuals, families, business, communities and a nation.

 

It means 25 years of building great relationships, being a part of the narrative of people’s lives; the lives of those driving big industry and sector deals to further boost our economy, in mining, metals, oil, gas, power and infrastructure etc.; the life of a young entrepreneur starting his first business; the life of a father buying his first family car or saving for his daughter’s university education … I believe we are most fortunate to be able to wield impact in such way.”

Keynote speaker, Governor of the Bank of Botswana. Mr. Moses Dinekere Pelaelo, commended the bank on this momentous milestone and of the impact of its efforts over the years. He implored Stanbic Bank Botswana “to continue to focus on making a veritable difference and to work with other institutions and stakeholders.” Mr. Pelaelo further shared: “there is need for banking institutions to diversify their services and continuously innovate to develop increasingly appropriate solutions for Batswana today and into the future. There is need, too, to continue to grow the wealth of talent we have in Botswana. To enhance our skills capability as a nation.”


Stanbic Bank Botswana first opened its doors on March 2nd, 1992 with 24 staff members. Today, Stanbic Bank has a total of 603 staff members across 10 branches nationwide. Stanbic Bank provides the full spectrum of financial services and operates within two divisions: Corporate and Investment Banking (CIB) and Personal & Business Banking (PBB).


CIB serves a wide range of requirements for banking and delivers this comprehensive range of solutions including; Investment Banking, Global Markets and Transactional Products and Services. CIB expertise is focused on industry sectors that are most relevant to emerging markets and Botswana. PBB offers general retail banking and financial solutions to individuals and small-to-medium enterprises in the personal and business market.

This division delivers the increasingly evolving customer needs with innovation and excellence as core principles. Some of the key services offered include Private and Executive Banking, Enterprise Banking, Commercial Banking, Agricultural Banking, Cellphone Banking, App Banking, Internet Banking, Business Online, Cross border and general trade offerings.


“We continue to be guided by the very ambition that marked our birth as a business, and we do so with enhanced focus and determination at every turn. Stanbic Bank is committed to enhancing the lives of the community it operates in and it is this inherent focus on people and passion that drives our operations, for we believe Africa is our home and we drive her growth. Thus, as we thank each and every person or entity that has helped bring us to where we are today, we also commemorate our 25th anniversary, our Silver Jubilee, with them. We dedicate and share it with all those who have contributed to our evolving narrative, and we thank them, wholeheartedly, for being a part of ours,” concluded Mr. Gabaraane.

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Botswana on high red alert as AML joins Covid-19 to plague mankind

21st September 2020
Botswana-on-high-alert-as-AML-joins-Covid-19-to-plague-mankind-

This century is always looking at improving new super high speed technology to make life easier. On the other hand, beckoning as an emerging fierce reversal force to equally match or dominate this life enhancing super new tech, comes swift human adversaries which seem to have come to make living on earth even more difficult.

The recent discovery of a pandemic, Covid-19, which moves at a pace of unimaginable and unpredictable proportions; locking people inside homes and barring human interactions with its dreaded death threat, is currently being felt.

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Finance Committee cautions Gov’t against imprudent raising of debt levels

21st September 2020
Finance Committe Chairman: Thapelo Letsholo

Member of Parliament for Kanye North, Thapelo Letsholo has cautioned Government against excessive borrowing and poorly managed debt levels.

He was speaking in  Parliament on Tuesday delivering  Parliament’s Finance Committee report after assessing a  motion that sought to raise Government Bond program ceiling to P30 billion, a big jump from the initial P15 Billion.

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Gov’t Investment Account drying up fast!  

21st September 2020
Dr Matsheka

Government Investment Account (GIA) which forms part of the Pula fund has been significantly drawn down to finance Botswana’s budget deficits since 2008/09 Global financial crises.

The 2009 global economic recession triggered the collapse of financial markets in the United States, sending waves of shock across world economies, eroding business sentiment, and causing financiers of trade to excise heightened caution and hold onto their cash.

The ripple effects of this economic catastrophe were mostly felt by low to middle income resource based economies, amplifying their vulnerability to external shocks. The diamond industry which forms the gist of Botswana’s economic make up collapsed to zero trade levels across the entire value chain.

The Upstream, where Botswana gathers much of its diamond revenue was adversely impacted by muted demand in the Midstream. The situation was exacerbated by zero appetite of polished goods by jewelry manufacturers and retail outlets due to lowered tail end consumer demand.

This resulted in sharp decline of Government revenue, ballooned budget deficits and suspension of some developmental projects. To finance the deficit and some prioritized national development projects, government had to dip into cash balances, foreign reserves and borrow both externally and locally.

Much of drawing was from Government Investment Account as opposed to drawing from foreign reserve component of the Pula Fund; the latter was spared as a fiscal buffer for the worst rainy days.

Consequently this resulted in significant decline in funds held in the Government Investment Account (GIA). The account serves as Government’s main savings depository and fund for national policy objectives.

However as the world emerged from the 2009 recession government revenue graph picked up to pre recession levels before going down again around 2016/17 owing to challenges in the diamond industry.

Due to a number of budget surpluses from 2012/13 financial year the Government Investment Account started expanding back to P30 billion levels before a series of budget deficits in the National Development Plan 11 pushed it back to decline a decline wave.

When the National Development Plan 11 commenced three (3) financial years ago, government announced that the first half of the NDP would run at budget deficits.

This  as explained by Minister of Finance in 2017 would be occasioned by decline in diamond revenue mainly due to government forfeiting some of its dividend from Debswana to fund mine expansion projects.

Cumulatively since 2017/18 to 2019/20 financial year the budget deficit totaled to over P16 billion, of which was financed by both external and domestic borrowing and drawing down from government cash balances. Drawing down from government cash balances meant significant withdrawals from the Government Investment Account.

The Government Investment Account (GIA) was established in accordance with Section 35 of the Bank of Botswana Act Cap. 55:01. The Account represents Government’s share of the Botswana‘s foreign exchange reserves, its investment and management strategies are aligned to the Bank of Botswana’s foreign exchange reserves management and investment guidelines.

Government Investment Account, comprises of Pula denominated deposits at the Bank of Botswana and held in the Pula Fund, which is the long-term investment tranche of the foreign exchange reserves.

In June 2017 while answering a question from Bogolo Kenewendo, the then Minister of Finance & Economic Development Kenneth Mathambo told parliament that as of June 30, 2017, the total assets in the Pula Fund was P56.818 billion, of which the balance in the GIA was P30.832 billion.

Kenewendo was still a back bench specially elected Member of Parliament before ascending to cabinet post in 2018. Last week Minister of Finance & Economic Development, Dr Thapelo Matsheka, when presenting a motion to raise government local borrowing ceiling from P15 billion to P30 Billion told parliament that as of December 2019 Government Investment Account amounted to P18.3 billion.

Dr Matsheka further told parliament that prior to financial crisis of 2008/9 the account amounted to P30.5 billion (41 % of GDP) in December of 2008 while as at December 2019 it stood at P18.3 billion (only 9 % of GDP) mirroring a total decline by P11 billion in the entire 11 years.

Back in 2017 Parliament was also told that the Government Investment Account may be drawn-down or added to, in line with actuations in the Government’s expenditure and revenue outturns. “This is intended to provide the Government with appropriate funds to execute its functions and responsibilities effectively and efficiently” said Mathambo, then Minister of Finance.

Acknowledging the need to draw down from GIA no more, current Minister of Finance   Dr Matsheka said “It is under this background that it would be advisable to avoid excessive draw down from this account to preserve it as a financial buffer”

He further cautioned “The danger with substantially reduced financial buffers is that when an economic shock occurs or a disaster descends upon us and adversely affects our economy it becomes very difficult for the country to manage such a shock”

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