An agreement has recently been signed by the First National Bank Botswana (FNBB) and the United Nations Development Programme (UNDP) to bolster the growth of SMEs in Botswana.

The CEO of the FNBB, Steven Bogatsu defined this joint venture as ‘an outstanding asset’ aimed at building innovative, productive and competitive SMEs to help them supply large firms more effectively and efficiently.

“We are pleased to enter into this agreement with UNDP because as FNBB, we remain deeply invested in partnerships and collaborations that create lasting socio-economic impact,” he said.

The CEO of the bank added that the agreement was well-timed, following the parliamentary approval of the Citizen Economic Inclusion bill. It’s hoped this will increase demand for local products and services.

Via this partnership, Bogatsu said the bank will offer preferential and competitive services to suppliers who are part of the UNDP’s Supplier Development Programme (SDP).

“As an integrated financial services provider, FNBB will provide tailor-made solutions to the unique needs of these businesses,” he stated.

According to UNDP representative, Margunn Alshaikh, ‘access to finance’ is viewed as a common challenge experienced by the majority of SMEs on the programme.

“UNDP recognises the difficulties faced by small businesses in their attempts to apply for various credit facilities through traditional banking means,” she said.
Alshaikh said UNDP saw fit to partner with FNBB with an aim to prioritise access to funding for the SMEs through the SDP.

“The UNDP-SDP provides training and support that cultivates growth within SMEs to a level where they can be considered bankable, meeting the requirements of commercial banks and national financial institutions, and in effect, reducing the level of risk often associated with SMEs.”