RMB Botswana unlocks value in Africa

Stable exchange rates, no foreign currency controls, a solid infrastructure and a good geopolitical environment are just a few of the many reasons to invest in Botswana right now. For easy execution of an investment strategy and optimization of returns, one needs to undertake that journey with the advice and solutions from a solid, reliable and innovative Corporate and Investment Banking partner. RMB Botswana is that partner. Olebile Makhupe, Director of RMB Botswana, explains why.

Botswana currently ranks as one of the top five performing countries in Africa in terms of operating environments, according to the “RMB Where to invest in Africa 2019”, “Doing Business” and “Global Competitiveness” reports.

“The main advantages of doing business in Botswana is the fact that it is politically stable; corruption is low; there are no foreign exchange controls; the country has a stable currency and high sovereign credit ratings. Added to that is the country’s liberal tax regime, duty-free import of machinery and equipment for manufacturing, and no restrictions on business ownership,” says Olebile.

Olebile is no stranger to the financial services industry. Her extensive banking experience includes senior roles in banks in New York, China and Mauritius. After spending many years as the FNB Botswana Treasurer, she joined RMB Botswana where she is currently leading a team of Solutionist Thinkers in the bank to grow RMB’s footprint in Africa.

“Our vision is to create sustainable value, unique solutions and superior economic returns for our clients and shareholders, not only in Botswana, but in the Broader Africa,” says Olebile.

RMB is the gateway to Corporate and Investment Banking in Africa. RMB Botswana is an Authorised Financial Services Provider and a division of FNB Botswana Limited. It is also a subsidiary of the FirstRand Group in South Africa, which is the largest financial services group (by market capitalisation) in Africa. RMB Botswana offers a comprehensive suite of corporate and investment banking products and services, advisory, finance and trading solutions, as well as investment opportunities and fund management solutions.

Solutionist Thinking

While one can argue that RMB has a similar offering to market than its competitors, Olebile says it is RMB’s unique Solutionist Thinking approach that distinguishes the bank from its rivals.

“We believe that while Africa faces many challenges, it is also home to many of the world’s biggest opportunities. Africa needs Solutionist Thinkers – Thinkers who can turn challenges into opportunities. At RMB we are passionate about solving problems for our clients. Our thinking digs deeper and sees further. It’s an approach we call Solutionist Thinking. With a can-do mindset that is considered, innovative, curious and resilient, we seek solutions beyond the obvious.

RMB’s Solutionist Thinking approach has translated into many, award-winning, innovative deals, notably in the agricultural, financial services, mining and resources and real estate sectors. These are currently some the biggest contributors to Botswana’s economic growth,” says Olebile.

“The retail sector (which includes tourism) has surpassed mining and is now the largest contributor to growth. The transport and communication sector has also been showing growth and a rise in contribution figures, mainly due to improved investments in technology as well as enhancement of the infrastructure for logistical businesses.

The tourism sector, which mainly operates at the higher end of the market, continues to support economic growth and add on to the local value chain. Stability in supply of water and electricity has also boosted business confidence and operational cost models for businesses, especially in the manufacturing and agricultural side,” adds Olebile.

Future growth

One of RMB Botswana’s key focus areas to facilitate a better business environment for investors is its participation in Public Private Partnerships (PPPs). “We work closely with various private sector bodies and actively engage government through different forums on policy initiatives around PPPs. It is especially in the infrastructure finance space where we have a significant part to play to advise and finance PPPs and concessions,” says Olebile.

Olebile believes that government has a critical part to play in making the country an attractive destination for financial investment and to set up Botswana as a financial hub for financial services industry players. On the regulatory front, government could for instance automate registration processes and improve the turnaround times for business facilitation when registering property, paying taxes and cross-border trading. Other suggestions include: more regular issuances of debt to help facilitate development of the capital markets to make it easier for corporates to know where they can raise funding; and setting up a one-stop facility within the Botswana Investment Trade Centre to facilitate business registration, taxes, access to land and utilities on behalf of investors. 

Olebile remains positive about the country’s economy despite the weakening diamond market. “Botswana is still among the top producers of diamonds in terms of value (not volume) and thus there has been price preservation despite an overall decline in the diamond index. The forecasts through to next year is a constant growth rate of 4 – 6% on prices, coupled with stability in the diamond sales outlook,” adds Olebile.

Appetite for complexity

“At RMB we are innovative in our thinking. Our enquiring and unconventional minds and ability to turn complexities into innovative solutions, is what distinguishes us from the rest. Our award-winning deals, highly-rated analysts, economists, dealmakers and talented Solutionists make us one of the leading Corporate and Investment Banking partners on the continent,” concludes Olebile.

ENDS