FAQ's

Yes.  The Micro Lending Regulations have been approved by the Minister of Finance and Development Planning and were published in the Government Gazette of March 9, 2012. NBFIRA hereby gives formal notice that the regulations and rules set forth in STATUTORY INSTRUMENT No. 14 of 2012 are in effect as of March 9, 2012. Consequently, all licensing exemptions have now expired and new registration and licensing applications are required from all micro lending operators within 30 days from March 23, 2012.

No, NBFIRA is the body that has been established to license all the individuals transacting Micro Lending business in Botswana, hence all the licenses are granted by its office.

1. Covering letter on business letterhead 2. Duly completed form 1 by applicant 3. Vetting documentation ( biographical/personal questionnaire affidavit, DIS FORMS, IDs, police clearance for all the controllers) details by Manager/P.O. 4. Proof of financial liquidity � certified to be in bank by the Accountants. 5. Proof of payment of license fees. 6. Statutory documentation � ( Proof of incorporation) 7. Detailed 3-5 year business plan. 8. Latest financial statements, for existing businesses. 9. Resume for Manager and or P.O. 10. Resolution of board if company. 11. Proof of established office or letter of intent for that purpose. 12. Standard proposed loan application form for customers. 13. Proposed dispute resolution and complaints guidance. 14. Service Level Agreements ( if any). 15. Proposed organizational structure. 16. Proof of BURS registration.

Yes. The NBFIRA Act provides that any person who advances loan and not licensed under the Banking Act or Building Societies Act should be licensed with our office.

This will depend on the setup structure of Motshelo wishing to be licensed with our office. Notify the Regulatory Authority if you are transacting business of Motshelo for recognition.

NBFIRA will not cap the maximum interest that can be charged by Micro Lenders. A guideline on maximum cost of credit is envisaged in the proposed Micro Lending Regulations.

It is the opinion of NBFIRA that a Micro Lender cannot charge interest on defaults for a period exceeding 3 months? A guideline is with respect to the in duplum rule and the BOB.

A pension or provident fund is set up to provide an income for a member on retirement or an income to dependants if the member dies.

Under a Pension Fund, the member receives a third of the benefit as a lump sum at retirement and the remaining two thirds of the benefit is paid out as a monthly pension over the members’s lifetime.

Provident Fund pays out the benefit as a lump sum at retirement.

Under a Defined Benefit Fund, the benefit at retirement is based on member’s salary and years of service.

Under a Defined Contribution Fund, the contributions by the member and employer are defined in the rules of the fund and the benefit at retirement is based on the accumulated contributions and the investment earnings.

Dependants are usually spouses or children of the member. However, if one can prove that they were financially dependent on the deceased for everyday necessities, they may qualify as dependants.

Individual members or dependants can claim certain kinds of benefits like disability, retrenchment, death and maintenance benefits.

Yes. The Botswana Public Officers Pension Fund (BPOPF) was set up to provide pension benefits for Government employees. The fund is administered by the Alexander Forbes Financial Services (AFFS).

Both the employer and employees may contribute to a fund. Usually, the employee and employer both contribute a percentage of the employees’ salary.

Employers usually appoint a Fund Administrator to administer the pension or provident fund. A Board of Trustees, appointed in terms of the Fund Rules consisting of representatives of both employee and the employer, oversee the management of the fund. In addition, a Principal Officer appointed by the Trustees is responsible for the daily operations of the Fund.

Fund Administrators are employed by Pension Fund Trustees to handle the day-to day operations of the fund. These include record keeping, contribution collection and benefit payments. Fund Administrators have a fiduciary duty to ensure that they administer pension funds in accordance with the provisions of the Pension and Provident Fund Act and the Fund Rules. The Fund Administrators in Botswana include:

  • Alexander Forbes Financial Services Botswana (Pty) Ltd.
  • AON Botswana (Pty) Ltd.
  • Fiducia Services (Pty) Ltd.