Linah K Mohohlo: Official launch of new Botswana coins
Welcome remarks by Ms Linah K Mohohlo, Governor of the Bank of Botswana, at the official
launch of the new coin, Gaborone, 27 February 2014.
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On behalf of the Board and staff of the Bank, I welcome you, Sir, Your Excellency The
President and all invited guests, first, to the Bank's impressive premises; second, and more
fittingly, to this event, the proceedings of which will culminate in the official launch of the new
family of Botswana coin.
I wish to acknowledge the presence of Your Lordship the Chief Justice Rre Dibotelo, and
Your Excellency the former President, Sir Ketumile.
The Honourable Minister of Finance and Development Planning, Rre Matambo, and your
Honourable Cabinet Colleagues, the Honourable Deputy Speaker of the National Assembly,
Members of the Diplomatic Corps, Chief Executive Officers of banks and other financial
institutions, Distinguished Ladies and Gentlemen - your presence too is acknowledged.
Your Excellency, as and when we have the opportunity to host you in the Bank's premises,
as is the case this morning, we feel distinctively honoured. It is all the more so when we are
privileged to host you on this particularly special day, February 27. Happy birthday Your
Excellency, and many happy returns.
I take pride in paving the way for you, Sir, to launch the new family of coin and declare them
legal tender in Botswana, so that they can be available for public use in daily transactions.
Indeed, the public and business community are anxiously looking forward to the new coins.
I have only a few remarks to make before I make way for appropriate officiation. In line with
international best practice, the Bank embarked on a comprehensive review of the
denominations, composition, form and design of the country's currency some years back.
Once the Honourable Minister of Finance and Development Planning had given the go
ahead, in line with the relevant Section of the Bank of Botswana Act (Section 24 (2)), the first
step of this exercise involved a renewal of all banknotes in 2009, which resulted in the
issuance of the Pula banknotes currently in circulation. Now we have a new set of coin, soon
to be launched, the make-up and denomination of which I leave for His Excellency The
President to speak to. In fact, Your Excellency's input and guidance in this respect, have
been invaluable.
Since the launch of the family of banknotes in 2009, currency in circulation has increased by
35 percent. This is attributable mainly to the P200 banknote, which is an indication of its
popularity. In fact, by the end of 2013, the P200 banknote accounted for approximately
60 percent of all the paper money in circulation.
As a related matter, the management of all currency is now conducted on these premises
called the Cash Management Centre. This facility assures efficient handling and delivery of
quality service to commercial banks, and generally enhances efficiency in the national cash
management cycle.
Although banknotes and coin continue to be a major medium of exchange in Botswana,
non-cash transactions, especially electronic transfers, have gained considerable ground. The
result is that the average monthly cheque payments have declined by over 50 percent to
about P3 billion in the five years to 2013.
In the same period, congestion at banking halls for cash withdrawal has been eased, due to
the increasing number and usage of Automated Teller Machines (ATMs). Equally important,
the value of average monthly ATM withdrawals has increased by about 50 percent to
P1.3 billion.
In the not-too-distant future, the efficiency of the national payments system will be enhanced
by the introduction of the cheque imaging and truncation system, which will reduce the
cheque clearing cycle. Furthermore, both the Accountant General's Office and the Botswana
Unified Revenue Service will be connected to the Bank of Botswana through the electronic
Botswana Interbank Settlement System. This will greatly improve the speed, security and
efficiency of government payment transactions, as well as those of the Botswana Unified
Revenue Service.
Director of Ceremonies, Distinguished Guests:
There is one last piece of noteworthy information obtained from institutional memory that I
would like to share with you. That is, since Botswana withdrew from the Rand Monetary Area
and introduced its own currency in 1976, it is the first time that a sitting President will, by the
end of this ceremony, have coincidentally presided over the renewal of all of the country's
banknotes and coin. Congratulations are in order, Sir.
Distinguished Guests, Ladies and Gentlemen:
It is now my pleasant duty and honour to invite you to the podium, Sir, Your Excellency The
President, so you could deliver your address and ultimately launch the country's new family
of coin, and, at the same time, declare the new coin legal tender in Botswana.
Your Excellency, Sir.