CEEP boosts FNBB growth
First National Bank Botswana (FNBB) anticipates growth in its commercial banking sector boosted by the Citizen Economic Empowerment Programmes (CEEP) partnership with Debswana.
The bank signed the CEEP partnership in 2021 with an aim to leverage the mining value chain opportunities to support local business growth as well as supporting growth of locally manufactured projects.
FNB CEO, Steven Bogatsu said the bank has significantly improved the turnaround times in the commercial segment. He said the bank’s focus on addressing challenges around the credit decision model and turnaround times has resulted in an increase in advances of approximately six percent by the end of 2022 compared to the prior year’s contraction of 10 percent. “The Bank’s Citizen Economic Empowerment Programmes (CEEP) partnership with Debswana is expected to have a significant impact on the segment and we remain optimistic to see several other corporates wanting to partner.”
In his comment in the Banks 2023 Integrated Report, Bogatsu explained that through the Ecosystem Banking drive, select clients were fully unpacked to appreciate their entire value chain with the intent to bank those not banked with FNB, as well as extending more solutions.
He said the business will continue to expand on its tripartite partnerships through ecosystem banking with clients on the RMB side of the business. “The partnership becomes far more efficient if the off taker is a client at RMB or FNB
Commercial and the producer or supplier is an SME. Herein lies a great opportunity to harness the value chain to benefit both the SME and the corporate.”
During the period 2022/2023, the bank allocated 92 percent of its total procurement spend to local companies. Under its retail segment the bank closed the year with 578 274 active clients with P6.25 billion in deposits and P10.76 billion in gross advances.