NBFIRA To Crack Whip On Errant Microlenders

Pauline Dikuelo | Monday August 10, 2015 15:49

Speaking to Monitor Business, NBFIRA Communications Manager, Tapologo Kwapa said that they continue to encounter cases where some businesses operate without licenses.

Kwapa advised the errant operators to register their businesses either as pawnshops or microlenders noting that failure to do so will result in closure of their businesses.

He added that during their campaign of sensetising the public about their services, they encountered a case where a microlender took a customer’s identity cards and bankcards as security.

“ We have only fined one company so far that had taken a customer’s identity cards.“However this is a work in progress and we are committed to ensure such lenders if found out are advised to cease their operations with immediate effect,” he added.

Kwapa added that they also rely on the members of the public to share with them information on such lenders who operate in their communities and to alert them so that they take the necessary action.

According to Kwapa, they have  currently registered about 285 micro lenders and only 186 have been licensed. From the registered microlenders, about 155 applications are citizen owned companies whilst 73 are from non-citizen owned entities.

As of March 31 2014, Gaborone had registered the highest number of micro lenders registering about 87 applications, followed by Francistown with 37, Selibe-Phikwe with 14 then Jwaneng and Maun with 12 each.

Currently the lending term ranges from one month to twelve months. About 154 lenders have applied for one to three month lending term while 30 have registered for four to 12 months lending term, about 25 are operating under 12 months lending term.