This report summarises the findings of the MAP Botswana diagnostic, a comprehensive study of the scope for financial inclusion in Botswana across four product markets: credit, payments, savings and insurance. MAP Botswana was requested by the Government of Botswana as input towards the development of a financial inclusion strategy for Botswana. The Ministry of Finance and Development Planning1 has set up a working group to steer the MAP project. MAP Botswana is funded by FinMark Trust, and this Diagnostic Report was prepared by Econsult Botswana2, with assistance from Cenfri.
MAP does not pursue financial inclusion merely for its own sake, but explores the linkages between financial inclusion and the real economy so as to impact people’s welfare. It is set apart from other diagnostic exercises in that: (i) it sets a detailed understanding of the target market and their needs at the core of the analysis; and (ii) is fundamentally linked to a multi-stakeholder process towards the implementation of a roadmap for financial inclusion. The findings in the rest of this report form the evidence base for such a roadmap.
The analysis first provides an overview of the country context and regulatory framework, which shapes the nature of the opportunities and constraints for financial inclusion. Based on quantitative as well as qualitative demand-side research, it then takes a closer look at the target market for financial inclusion: their realities, needs and current usage profile. With the target market needs and enabling environment in mind, the analysis then turns to the supply of financial services in Botswana, unpacking the dynamics of the market for credit, payments, savings and insurance, respectively. Finally, it concludes on the cross-cutting factors driving financial inclusion in Botswana, outlining five key priorities for extending financial inclusion and, for each, suggesting potential actions to unlock the opportunities and overcome current barriers.