Major Banks Back Botswana's Economic Diversification Drive
Stanbic Bank is committed to being part of creating the ecosystem that will allow SEZs to thrive.
GABORONE, Botswana— As Botswana seeks to diversify its economy beyond diamonds, financial institutions are emerging as key players in driving growth within the country's Special Economic Zones (SEZs), writes Tshepiso Gabotlhomolwe, AfricaBrief SADC Correspondent.
Chose Modise, Chief Executive of Stanbic Bank Botswana, emphasizes that financiers are not merely supporters but catalysts for change in this economic transformation.
The recent launch of the Airport City Special Economic Zone, focusing on industries such as diamond beneficiation, pharmaceuticals, medical devices, and logistics services, has highlighted the crucial role of financial institutions in reshaping Botswana's economy.
Stanbic Bank Botswana, a platinum sponsor of the Airport City SEZ, has reaffirmed its commitment to the country's growth.
"We've been financing dreams in Botswana for over 30 years, and our purpose resonates deeply—'Botswana is Our Home, We Drive Her Growth,'" Modise stated, emphasizing that this message encapsulates the bank's dedication to fostering sustainable economic development for the entire country.
As part of the Standard Bank Group, the largest bank in Africa by assets, Stanbic Bank brings extensive experience in supporting infrastructure projects and small and medium enterprises (SMEs) across the continent.
This expertise, coupled with the bank's presence in 20 sub-Saharan markets and five global financial centres, positions it uniquely to drive growth in Botswana's SEZs.
Modise highlighted the potential of SEZs to spur economic transformation and attract both local and international investors, especially crucial for Botswana as it seeks to reduce its dependence on diamonds.
"For Botswana, which has historically relied on diamonds, SEZs offer a launchpad for new industries. They can drive export-led growth and create opportunities for SMEs through backward and forward linkages," he explained.
However, Modise stressed that the role of financiers extends beyond providing funding.
"The complexity of Botswana's economic challenges demands more than just money—it requires bold leadership and collaboration across sectors," he said.
The banking sector's history of collaboration in delivering syndicated projects sets the precedent for how industries can unite to meet complex challenges, particularly in SEZs.
Modise cautioned that financing alone won't guarantee success. "It's not just about the money. We need human capital development, innovation, and a culture of collaboration to build a sustainable, export-led economy," he emphasized.
Stanbic Bank is committed to being part of creating the ecosystem that will allow SEZs to thrive.
Looking ahead, Modise underscored the importance of diversifying Botswana's economy, given the potential decline in the diamond industry.
He sees the Airport City SEZ as a critical step in the right direction but stresses the need for SEZs to create opportunities for SMEs, promote innovation, and develop highly-skilled industries.
Modise reiterated Stanbic Bank's commitment to driving inclusive and sustainable economic transformation in Botswana. "Our role as financiers goes beyond profit. We are here to support Botswana's future, alongside government and other private sector players," he said.
Quoting David Rockefeller, Modise concluded, "Business success requires discipline and hard work. But if you are not frightened by these things, the opportunities are just as great today as they ever were."
He added, "The opportunities for Botswana are vast, and through strategic investments and innovative financial solutions, we can unlock the potential of SEZs and drive our economy beyond diamonds."
As Botswana continues its journey towards economic diversification, the role of financial institutions like Stanbic Bank will be crucial in shaping the success of Special Economic Zones and fostering a new era of growth and innovation in the country.