The bank outlines risk factors, economic challenges, and digital growth strategies in its 2024 Integrated Report that also takes note of geopolitical conflagrations that contribute to “growing global regulatory fragmentation”
TLOTLO KEBINAKGABO
ABSA Bank Botswana remains cautious amid a volatile operating environment shaped by both global and domestic risks.
Writing in the bank’s 2024 Integrated Report, Managing Director Keabetswe Pheko-Moshagane notes the importance of staying alert in an increasingly complex landscape.
“It is imperative for the bank to remain vigilant, continuously identifying and proactively managing key risks that could affect our business, financial performance and strategic objectives,” she states.
Global uncertainty
She highlights elevated geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict as contributors to growing global regulatory fragmentation.
The report also points to potential economic uncertainty under a new Trump administration in the United States, especially regarding shifts in trade and foreign policy.
On the domestic front, Pheko-Moshagane cites Botswana’s ongoing budget deficit and weakening fiscal position as contributing to market debt distress, which in turn raises credit risk concerns.
Drought and tempests
She stresses the need for strategic positioning to manage risks and respond to macroeconomic pressures.
The bank’s report underscores climate-related threats, citing severe drought in 2024 followed by widespread flooding in early 2025 as clear signs of changing weather patterns.
These events are seen as requiring closer monitoring to ensure an effective institutional response.
“While the operating environment continues to evolve, there are several dynamics that require heightened monitoring to ensure proactive response strategies,” Pheko-Moshagane states.
Future-fit technological skills
In response to the increasingly digital banking landscape, ABSA says it continues to invest in workforce upskilling to develop. This includes enhancing operational efficiency and customer experience through various digital initiatives.
Key developments include the rollout of POS terminals at branches, digitisation of the bancassurance product offering, automation of trade management processes, and improvements in self-service tools for retail clients.
These efforts led to an 11 percent increase in digitally active customers in the Retail and Business Banking (RBB) division.
Strong liquidity
Pheko-Moshagane says the bank remains financially sound, with strong capital and liquidity positions offering a buffer against foreseeable risks. She notes that the Board, led by its Chairman, continues to provide the oversight necessary to navigate current challenges.
“Our strategy going forward will be anchored on sustaining the momentum built over the past years, defending our market position, and pursuing cautious well-considered growth,” she says.