FNB steps up SMEs support
First National Bank Botswana (FNB) has increased its efforts towards SME economic development following government’s initiative for citizen empowerment in local supply. The bank continues to grow its commercial banking product offering through increased access to competitive finance and credit facilities.
Speaking during the national budget review last week, FNB Chief Executive Officer, Steven Bogatsu said this economic demand has given the bank an opportunity to exponentially increase its efforts towards SME economic development as part of its shared value principle.
“Through our Corporate and Investment Banking division, Rand Merchant Bank (RMB), we are growing our Environment, Social and Governance (ESG) advisory capabilities that will allow us to grow more diverse and innovative solutions.” While the economic challenges including high inflation, rising interest rates and the rising oil prices spurred by Russia-Ukraine conflict are tremendously affecting the economy, Bogatsu highlighted that there were opportunities that presented themselves to the nation.
He said comprehensive measures need to be put in place for greater citizen empowerment in local supply chains and overall SME development. “At FNBB, this provided us with an opportunity to exponentially increase our efforts towards SME development, as part of our shared value principle.” Bogatsu further stated that their continued participation in various supplier development programmes locally has been vital in providing funding and facilitating increased SME access across value chains, especially in the diamond mining supply chain.
“We have also continued to grow our commercial banking product offering through improved access to finance and competitive finance credit facilities such as Purchase Order Financing and other working capital funding, in addition to our transactional and investment facilities.” In his address, Minister of Entrepreneurship, Karabo Gare said government has identified entrepreneurship and SMME development as a key strategy in responding to main national economic issues.
He said the Economic Inclusion Act will help to reinforce public procurement practices that are inclusive, in accordance with other national policies and priorities. “There are two most promising mutually inclusive strategies that are being adopted by the Ministry of Entrepreneurship to support the growth of SME to drive strategic goals.
This involves a multi step process that requires assessing the current state of the regions or localities, identifying their unique value propositions, evaluating existing programmes and establishing strategic partnerships and SME parks or hubs.”