Bank Gaborone is taking a proactive role in strengthening small and medium-sized enterprises (SMEs) in Botswana, underscoring resilience and sustainable growth amid a challenging business environment.
This was highlighted during the bank’s third Kgwebo Connect Series, held under the theme ‘Empowering the Everyday Entrepreneur: Policy Insights and Practical Funding Solutions.’
The event brought together business leaders and policy advocates to examine the current SME landscape and discuss strategies for sustainable growth, Mmegi reports.
Offering the policy perspective, Mpaphi Tsholofelo, Head of Policy & Research at Business Botswana, described the current business environment as “subdued,” highlighting that SMEs are navigating an economy in the midst of structural reforms and diversification.
“They are in a critical transitional phase. Financing, logistics and macroeconomic pressures are all affecting sustainability,” he said, going on to add that Business Botswana is prioritising advocacy for improved access to risk-based capital for SMEs.
From a banking perspective, Shangano Tsayang, Manager of Credit Origination at Bank Gaborone, stated that the bank uses a structured credit assessment model called CAMPARI to ensure responsible lending while supporting business growth.
He noted that the model assesses a borrower’s character, business capability, profit margins, purpose of funds, loan amount, repayment capacity, and collateral security.
“It is very important for entrepreneurs to honour their repayment agreements. How SMEs perform has a direct impact on Botswana’s national credit profile and investor confidence,” Tsayang said.
He added that Bank Gaborone also encourages entrepreneurs to invest in their own projects to show commitment and share in the risk.
Furthermore, Tsholofelo welcomed closer collaboration between financial institutions and business associations, noting that banks like Bank Gaborone are key partners in strengthening the SME ecosystem.
“We need to bridge the gap between risk and opportunity. Banks are businesses too, but together we can build financing models that support innovation and growth,” he said.
One of the regular contributors to the Kgwebo Connect Series, Bobo Samuel, a business banker at Bank Gaborone, stated that SMEs remain the backbone of the economy but need strong financial partners to navigate the current market conditions.
“SMEs are the drivers of our economy, yet they are operating in a challenging environment. Our role as a bank is not only to fund businesses, but to walk with them so they remain resilient and consistent,” Samuel said.
The Kgwebo Connect Series is a key element of Bank Gaborone’s wider initiative to engage, educate, and support entrepreneurs, establishing the bank as a driver of resilient and competitive SMEs in Botswana’s changing economic landscape.