FNBB Launches Business Banking Unit (Friday, September 28, 2007)

The First National Bank of Botswana (FNBB) has entered into agreements with the Local Enterprise Authority (LEA) and the Women in Business Association (WIBA) to promote business growth and development in Botswana.

The First National Bank of Botswana (FNBB) has entered into agreements with the Local Enterprise Authority (LEA) and the Women in Business Association (WIBA) to promote business growth and development in Botswana.

This was revealed at a breakfast meeting hosted by FNBB to launch its new business unit, Business Banking, at the Gaborone International Conference Centre (GICC) yesterday.

Delivering the keynote address, Tsholo Kokorwe, who will head the new specialised unit, said FNBB was responding to new and emerging businesses which are a compelling source of growth in Botswana and the rest of the SADC region.

"We are working very closely with other stakeholders who are keen to promote business development in Botswana," Kokorwe said.

"This is why we are so proud to inform you of the partnerships we signed with the two organisations, LEA and WIBA, as we seek to promote business growth in this country,"

She said it is evident that there is potential for growth in this sector: "This is so, especially given the extent to which the Botswana Government promotes diversification of the economy in order to reduce the current reliance on the diamond industry."

In addition to catering for established and new businesses, the FNBB Business Banking unit will identify customers' needs and offer solutions.

The unit will offer cheque accounts, foreign currency accounts, investment accounts, business loans and overdrafts, guarantees, trade finance, property finance, and vehicle finance through Wesbank.

Furthermore, Kokorwe said, "we have a range of electronic banking services, including the Business Internet Solution that enables transactions over the Internet at your convenience and inContact Pro.

"One of the added bonuses of FNB Business Banking is an initiative we will be launching shortly, known as the BIZnetwork."

The Chief Executive Officer of FNBB Danny Zandamela said the new business unit marks a milestone in the history of his bank and the strengthening of FNBB's relationship with the business sector in Botswana.

"This pioneering move to establish a Business Banking unit acknowledges the diversity of the Botswana economy,' he said. "We recognise the need for solutions that cater for specific segments and are proud to be offering a service tailored to the needs of new and emerging businesses, in addition to our usual diverse (product range)."

FNBB's introduction of a special business section comes shortly after another bank, Standard Charted, launched a special credit facility for small and medium enterprise (SMEs) a key feature of which is the elimination of collateral.

Stanchart said it was responding to widespread criticism that banks were reluctant to fund SMEs under the pretext that small businesses posed a higher risk of defaulting on loan repayments.

At the launch of the Stanchart facility, LEA said it would soon sign a Memorandum of Understanding with Standard Chartered to assist its (LEA's) clients.

It said it would present complete business plans to the bank for assessment, which would cover direct observations, surveys and interventions, if necessary.