Botswana has long recognised the importance of financial sector development in pursuit of deep financial markets, sustainable and inclusive economic growth. Against this background, the evolution of the financial sector in Botswana has been guided by deliberate policy formulation, advancement in financial technology, evolving user needs in the economy, as well as adoption of international standards and best practice.
Nevertheless, international experience shows that Botswana lags behind in several respects, including financial institutions and market depths, financial access and size relative to the economy. The country has also not kept pace with peers in financial innovation and, as such, there is a dearth of financial derivatives that are important in risk management as well as in harnessing financial technology to reap maximum benefits. In order for the country to realise the full benefits of financial sector development, appropriate financial sector policies should be formulated and implemented, focusing on promotion of a conducive operating environment, sound regulatory and supervisory frameworks, fostering the development of financial markets and broadening financial inclusion.
