7th October 2021
Own Correspondent
The acquisition of BancABC by Access Bank which was celebrated today as part of the October 2021 edition of the Botswana Stock Exchange bell ringing ceremony will offer Batswana an opportunity to share in the wealth by investing in the company through the purchasing of shares and thereby promoting citizen economic empowerment and inclusion say Government officials.
“By integrating Access Bank’s technological infrastructure, including its digital offerings and its corporate and SME capabilities, BancABC is well positioned to continue on its positive trajectory that we have witnessed in recent years,” said Peggy Serame, Minister of Finance and Economic Development.
She said, “The acquisition of the BancABC by Access Bank constitutes foreign direct investment, which we are grateful of, especially given the impact of COVID-19 pandemic on the domestic economy. At a macro-level, it is imperative that, collectively, we promote a conducive environment for companies
to do business in Botswana with Batswana.”
Serame said the benefits of these types of investment are priceless as they further increase productivity, create jobs, develop infrastructure, promote innovation, foster skills transfer and help to introduce technological advancements that can contribute towards the growth of Botswana economy.
The BSE was designated as a Self-Regulator Organization in 2020 and the Securities Act was amended to align with international best practice.
In line with Botswana’s national priorities espoused in Mid Term Review of NDP 11, Economic Recovery and Transformation Plan (ERTP) and the Reset Agenda, officials say they will continue to ensure the integrity of Botswana’s financial system, promoting digitalization and public sector reforms.
According to officials a well-run and efficient stockmarket gives the right signals to the international market forinward investment with officials happy with capital raised by listings with BSE.
Foreign participation in the BSE accounted for 40% to 60% of total turnover in the last five (5) years. This is testimony to the fact that the exchange is able to attract diversity of investors across the world.
According to officials the local economy is projected to grow by 9.7 percent in 2021. This will reverse the GDP loss experienced in 2020, when the economy contracted by 8.5 percent as a result of the pandemic. Further, in Quarter 2 2021, the economy grew by 36 percent compared to a year earlier. This GDP growth of 36 percent puts us well on track to achieve the full year target.
Access Bank Plc is the largest retail bank in Sub-Sahara Africa in terms of customer base with over 40 million customers, which is more than the population of 82% (47) of African countries.
It has over 2,900 Automated Teller Machines, 9.8million unique mobile and internet banking users, 49,417 Point of Sales Terminals, 8 million USSD users, over 58,000 agents and operate from 675 branches. It takes pride in delivering services through 4 SBUs in 10 African countries now including Botswana, the United Arab Emirates, the United Kingdom and 3 representative offices in China, India, and Lebanon.
Its African business strategy is anchored on 4 key pillars Trans-Africa and global trade which leverages our presence in key trade hubs; Payments and remittances; Retail and alternative channels leveraging digitization and access to cheap sources of funds, and Global relationships using the one-bank model.
“In short, our mission is to be Africa’s Payment Gateway to the World. Because we are a gender balanced institution, 47% of our employees are women. We are proud of the incredible talent
of our people, who are also our ambassadors as we continue our quest to be the World’s Most Respected African Bank,” said Herbert Wigwe, group Managing Director of Access Bank.
He said, “Whether you look at the arts, fashion, entertainment, agriculture, finance, engineering, IT industries, or any other industry…there is great talent here. In 2020, we continued to lead numerous efforts that propel both our sustainability targets and our African gateway strategic agenda. We were granted a sustainability certification by the European Organisation for Sustainable Development, under its Sustainability Standards and Certification Initiative,
at the World Development Finance Forum.”
Wigwe expressed desire to leverage Access Bank Plc’s operating model, centralizing the IT infrastructure to drive synergies, focusing on products critical and relevant to Botswana market, and providing capital, liquidity and funding to enable disciplined balance sheet growth to drive Return on Equity.
The Bank of Botswana officials revealed that they approved the acquisition after extensive evaluation involving several elements including ownership and governance structures and scale of operations; financial strength and performance; strategic intent, market, and developmental impact; business conduct, reputation, and integrity issues; as reflected in performance and strategic direction.
“I can confirm that in all these aspects the assessment was positive, leading to the Bank of Botswana Board concluding that Access Bank PLC met the licensing and prudential requirements to be
licensed as a bank in Botswana, hence the approval, in principle, of the acquisition of 78.15 percent of ABCH shares in BancABC, in March 2021,” said Moses D Pelaelo, Governor of the Bank of Botswana(BOB).
He said, “The overriding issue for Botswana is financial inclusion generally, where it is expected that Access Bank PLC will add to vibrancy of market competition and broader coverage in attracting customers, diversity of products and services, quality of service provision and related
cost rationalization, for the benefit of both its investors and customers.”
In terms of potential impact, there is evidence, globally, thatSMMEs are the lifeblood of any economy and are responsiblefor much of employment creation, innovation and economicgrowth, broadly.
Access to mortgage finance and house ownership adds to economic freedom and security and has great potential to unleash wealth-enhancing possibilities in several directions say central bank officials.
The current estimated 15 percent share of mortgages in total commercial bank loans in Botswana (very low compared to peer upper middle-income economies).
The other area is an increasing need to complement government efforts in funding infrastructure development and this includes active engagement in fostering the development of the bond market or, more broadly, capital markets, where Access Bank PLC has the experience of operating in other
African markets and emerging economies.
This, combined with medium- to long-term project financing, would help build the nation’s productive capacity and therefore attract investment and stimulate innovation and more vibrant and efficient production of goods and provision of services.
