Business

FNBB joins race to formalise Metshelo Savings

Lewanika Timothy | Wednesday February 18, 2026 06:11

The country’s largest commercial bank, First National Bank Botswana (FNBB), has joined the commercial race to formalise group savings schemes known as metshelo, as financial institutions and retailers compete to capture one of Botswana’s most entrenched informal financial systems.
 
The country’s largest commercial bank, First National Bank Botswana (FNBB), has joined the commercial race to formalise group savings schemes known as metshelo, as financial institutions and retailers compete to capture one of Botswana’s most entrenched informal financial systems.

In a market announcement last week, FNBB said it would introduce a dedicated Motshelo Savings Account designed to provide a digital banking solution for saving scheme groups that have historically operated outside mainstream banking.

Announcing the launch, FNBB Retail Director Monkgogi Mogorosi said that metshelo remain a vital financial practice cutting across income levels.

“Now more than ever, coming together to save for a common goal is critical,” she said, adding that the product combines traditional savings culture with digital functionality, including real-time transaction alerts, shared visibility of balances and the ability to add members digitally.

The account offers zero monthly fees, free ATM and ADT deposits, interest of up to 3.35 percent per annum, and a maximum balance of P2.5 million.

Metshelo are informal savings groups in which members contribute fixed amounts over an agreed period, either rotating payouts amongst members or accumulating funds towards a shared objective. The schemes are widely used to finance groceries, social events, small-scale investments, and asset purchases. Traditionally cash-based and administered within trusted social circles, metshelo have operated largely outside formal banking channels.

FNBB’s move comes amidst growing competition to bank these savings pools. Other commercial banks have introduced similar group savings accounts in recent years, whilst major retailers, including Choppies and Sefalana, have long facilitated grocery-based metshelo arrangements that allow groups to accumulate store credit for bulk purchases, particularly during the festive season.

The growing interest in metshelo reflects competition for an underbanked segment with significant aggregation power rather than a simple liquidity play. Thousands of groups across the country mobilise regular contributions that, collectively, represent substantial savings pools operating outside formal financial channels. By targeting metshelo, banks are effectively pursuing clusters of customers at once, onboarding multiple account holders through a single group structure and deepening digital adoption. Retailers have long recognised this potential through grocery-based schemes that convert pooled savings into guaranteed bulk purchases.