Access Bank Botswana has weathered the economic challenges of 2023, achieving substantial growth and strategic milestones.
Despite global uncertainties, the bank demonstrated resilience and proactive adaptation, reflected in its strong financial performance.
In 2023, global economic uncertainties driven by geopolitical tensions and supply chain disruptions posed significant challenges for many institutions. The International Monetary Fund (IMF) predicted that global growth would decline from 3.5 percent in 2022 to 3.1 percent in 2023, before gradually increasing to 3.2 percent by 2025. Central banks’ increased policy rates to combat inflation and the removal of fiscal assistance have continued to negatively impact global economic activity. However, there were signs of a slowdown in some areas of inflation, with the worldwide headline inflation rate projected to drop to 5.8 percent in 2024 and further to 4.4 percent by 2025.
Access Bank Botswana reported an 83 percent increase in profits for the year, defying global trends and highlighting its strong operational resilience and efficient management techniques. Managing Director Shepherd Aisam highlighted the strategic investments made throughout the year, stressing their critical role in improving client offers and growing market presence. These efforts came with higher operating costs, but the investments paid off in the form of sustainable income growth, demonstrating Access Bank’s dedication to sustainable development and customer-focused banking solutions.
The year 2023 marked a period of strategic investments and transformative initiatives for Access Bank Botswana, aimed at fortifying its market position and enhancing customer offerings. The bank expanded its service centers and significantly increased its ATM network, ensuring broader accessibility to banking services across Botswana. The introduction of the innovative “Access Closa” agency further extended the bank’s reach into areas without convenient access to traditional banking services, thereby enhancing financial inclusion.
In retail banking, Access Bank Botswana saw notable developments, with a focus on digital transformation and customer-centric innovations. The bank recorded a 19 percent growth in retail deposits, driven by aggressive customer acquisition strategies and enhanced digital platforms. New products like the Salary Advance loan, Access Africa, and “N’stakolle” loan accumulated sustainable market interest, showcasing the bank’s commitment to fostering innovation in Botswana’s banking industry. Access Africa has transformed cross-border payments, allowing for instantaneous international transactions and providing clients with an improved banking experience.
In the wholesale banking sector, Access Bank Botswana strategically managed its loan book, prioritising high-yielding government purchase orders (GPOs) for business banking. Despite a 21 percent contraction in the loan book, the bank achieved a 4 percent increase in deposits through focused customer transaction activities and revised funding strategies. The emphasis on expanding point-of-sale channels and enhancing transactional volumes led to a remarkable 99 percent growth in transactional revenues, underscoring the bank’s effective operational execution in wholesale banking.
Financially, Access Bank Botswana reported a notable increase in non-interest revenue, which surged by 36 percent, primarily driven by digital products, lending-related fees, and transactional revenues. The bank’s digital platforms experienced a remarkable 47 percent growth in users, reflecting strong customer adoption and engagement with digital banking solutions. The growth in transactional revenue also saw a substantial increase of 99 percent, buoyed by an exponential rise in point-of-sale channels and other transaction volumes.
Looking forward, Access Bank Botswana remains committed to its strategic pillars, focusing on customer-centricity, evolving with customer needs, and expanding market share. The bank plans to continue its aggressive pursuit of growth through digital channel optimization, further roll-out of agency banking channels, and enhancing customer value propositions.
“Our recent initiatives have proven to be exceptionally worthwhile investments, underpinned by substantial efforts to expand our presence and enhance our customer offerings,” stated Aisam.
The strategic efforts and strong financial performance of Access Bank Botswana demonstrate its adaptability and dedication to innovation. As it broadens its reach and improves its client services, the bank is well-positioned to take advantage of future growth prospects and provide value to its stakeholders. Access Bank Botswana emerges as a leader in a challenging local and international economic climate, navigating through uncertainty with operational efficiency and strategic understanding.
