Republic of Botswana - Financial Sector Assessment - February 2023

Jul 19, 2026

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Financial Sector Assessment covering Botswana’s financial system, mission findings, and updated results under the Financial Sector Assessment Program (FSAP). Prepared for official use by the IMF and World Bank joint teams following field visits in 2022 and early 2023, the report synthesizes core observations on sector vulnerabilities and risks. It also outlines policy recommendations and includes structured discussions on financial inclusion, MSME access to finance, domestic market development, state roles, and financial stability, resilience, and integrity.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages58

Reading Time2 h 26 min

Contents

Glossary

Preface

Introduction

Financial Inclusion and Digital Finance

MSME Access to Finance

Developing Domestic Markets for Long-Term Financing

Role of the State in the Financial Sector

Assessment of Financial Sector Risks and Vulnerabilities and Policies for Addressing Financial Stability, Resilience, and Integrity

Appendices

Public Disclosure Authorized Public Disclosure Authorized FOR OFFICIAL USE ONLY REPUBLIC OF BOTSWANA FINANCIAL SECTOR ASSESSMENT FEBRUARY 2023 Prepared By Finance, Competitiveness, and Innovation Global Practice and Africa Regional Vice Presidency A joint IMF-World Bank mission visited the Republic of Botswana during October 24 – November 2, 2022 and 16 January – 1 February, 2023 to update the findings of the Financial Sector Assessment Program (FSAP) conducted in 2007. 1 This report summarizes the main findings of the mission, identifies key financial sector vulnerabilities, and provides policy recommendations. 1 The team was led by Harish Natarajan (WB) and Thordur Jonasson (IMF) and included Rinku Chandra (WB Claney Lattie (IMF) and) as Deputy Mission Chiefs, Dan Cheng, Ian Stuart, Yuan Rollinson, and Adrian Wardzynski (IMF), Krishnamurti Damodaran, Fiona Stewart, Peter Lohmus, Ivor Istuk, Francesco Di Salvo, Claudia Meek, and Wuraola Fanimokun (WB), and Timo Broszeit, David Parker and Christopher Wilson (all IMF Experts) . CONTENTS GLOSSARY _______________________________________________________________________________________ 3 PREFACE _________________________________________________________________________________________ 5 INTRODUCTION ________________________________________________________________________________ 12 A. Country Context ______________________________________________________________________________ 12 B. Structure of the Financial System _____________________________________________________________ 14 C. Recent Trends in Financial Sector Development ______________________________________________ 17 FINANCIAL INCLUSION AND DIGITAL FINANCE______________________________________________ 19 MSME ACCESS TO FINANCE ___________________________________________________________________24 DEVELOPING DOMESTIC MARKETS FOR LONG-TERM FINANCING _________________________ 29 ROLE OF THE STATE IN THE FINANCIAL SECTOR_____________________________________________36 ASSESSMENT OF FINANCIAL SECTOR RISKS AND VULNERABILITIES AND POLICIES FOR ADDRESSING FINANCIAL STABILITY, RESILIENCE, AND INTEGRITY_________________________ 41 A. Systemic Risk Assessment ____________________________________________________________________ 41 B. Supervision and Bank Regulation _____________________________________________________________ 43 C. Macroprudential Policy _______________________________________________________________________ 45 D. Systemic Liquidity Management______________________________________________________________ 45 E. Financial Safety Nets, Crisis Management and Bank Resolution ________________________________ 46 APPENDICES I. Key Financial Sector Stability and Development Indicators ____________________________________ 48 II. Implementation of 2007 FSAP Recommendations ____________________________________________ 51 GLOSSARY AIM Aide-Mémoire BA Banking Act, 1995 BBS Botswana Building Society BBO Botswana Banking Ombudsman BCP Basel Core Principles BDC Botswana Development Corporation BoB Bank of Botswana BoBAA Bank of Botswana Amendment Act, 2022 BOCA Botswana Cooperative Association BOCRA Botswana Communication Regulatory Authority BPOPF Botswana Public Officers Pension Fund BSB Botswana Savings Bank BSD Bank Supervision Department BSEL Botswana Stock Exchange Limited BWP Botswana Pula CAR Capital Adequacy Ratio CBDC Central Bank Digital Currency CEDA Citizen Entrepreneurial Development Agency CI Act Credit Information Act CIRT Computer Incidence Response Team CP Core principle CPSD Country Private Sector Diagnostic CRS Credit Reporting System DIS Deposit Insurance Scheme DISR Deposit Insurance Scheme Regulation DFS Digital Financial Services DMO Debt Management Office DRBA Draft Revised Banking Act D-SIBs Domestic Systemically Important Banks ELA Emergency Liquidity Assistance ERTP Economic Recovery and

FAQs

What is the purpose of the Botswana Financial Sector Assessment report?

It summarizes the main FSAP mission findings, identifies key financial sector vulnerabilities, and provides policy recommendations.

Which organizations prepared the assessment?

The report was prepared by IMF and World Bank teams as part of the Financial Sector Assessment Program.

What period was covered by the mission visits?

The joint mission visited Botswana during October 24 to November 2, 2022 and again from January 16 to February 1, 2023.

Jul 19, 2026

Upload by Violet