The banking industry in Botswana's approach to assessing risks and managing its lending practices is crucial for enabling the private sector to spearhead economic growth focused on exports.

This is according to the CEO of Stanbic Bank Botswana, Chose Modise.

Speaking at the launch of the Special Economic Zones Authority’s Airport City, he stressed the need for “more and better” collaboration among different private sector stakeholders to achieve the diverse growth that the country needs in the future.

“We have to think about Botswana beyond diamonds and whilst of course, they have a critical role to play, we are seeing the declining trend over time,” he said.

“We can't afford to wait until it’s too late and we have to change whilst we have the resources to change, and diamonds provide that launch pad. The question is how to drive that private sector-led, export-led, inclusive, and transformative growth,” he noted.  

Growth driven by the private sector and focused on exports is a major priority for the government, which is being pursued through increased investment in supportive infrastructure and enhancements to business regulations, Mmegi newspaper reports.

During the Business Botswana National Business Conference in Francistown in August, leaders from the private sector engaged in discussions about how to take the government's initiative to promote diversified economic growth.

“The private sector, especially banking, has to play a leading role in diversifying the economy,” Modise added. “Government needs to provide an enabling environment and set the stage, not play on the stage. It must allow the private sector to drive the economy.”

The Stanbic Bank Botswana CEO also said that in regard to transforming Botswana’s economy from its reliance on mining, funding was not the key headwind: “What we need to do is focus on human capital development and build a culture of innovation and collaboration within and across sectors. My ask is to put our individual agendas aside and collaborate for a bigger purpose and a better Botswana.

“The challenges that the country faces are more complex than before and this requires more and better collaboration. We want to be at the forefront of that,” he stated.