small and medium scale enterprises ( smmes ), owner - occupied residential mortgages and project financing. needless to state, banking, by definition, is the business of trust and risktrading, of course in a prudent, safe and sound manner. in terms of potential impact, there is evidence, globally, that smmes are the lifeblood of any economy and are responsible for much of employment creation, innovation and economic growth, broadly. this is more so in our continent, africa. access to mortgage finance and house ownership adds to economic freedom and security and has great potential to unleash wealth - enhancing possibilities in several directions. the current estimated 15 percent share of mortgages in total commercial bank loans in botswana ( very low compared to peer upper middle - income economies ) need to improve markedly, which will go a long way towards helping the economy to realise its potential. the other area is an increasing need to complement government efforts in funding infrastructure development and this includes active engagement in fostering the development of the bond market or, more broadly, capital markets, where access bank plc has the experience of operating in other african markets and emerging economies. this, combined with medium - to long - term project financing, would help build the nation ’ s productive capacity and therefore attract investment and stimulate innovation and more vibrant and efficient production of goods and provision of services. channelling back credit in this direction should, therefore, generate more business for you, access bank plc, in botswana. honourable minister and distinguished ladies & gentlemen this plea for enhanced funding of productive domestic economic activity is against the background of ample domestically mobilised financial resources, especially by the pension fund industry. a substantial part of these resources is, for prudence and optimisation purposes, rightly invested abroad to preserve capital and generate return, given the domestic constraints. however, i suggest that the banking industry, the broader financial sector and local industry need to actively engage and innovate around finding local opportunities for productive domestic deployment of these resources. this would massively impact domestic economic activity, employment creation and enhanced inclusivity. in the area of digitalisation, an aspect of the so - called “ new normal ”, i also appreciate that access bank plc is active in deployment of digital channels that affords financial inclusion and promotes enhanced access to payments platforms, funds transfer and remittances, which, as well as being convenient, help promote economic activity and potential for increasing innovation, efficiency and business development. honourable minister and

to be licensed as a bank in botswana, hence the approval, in principle, of the acquisition of 78. 15 percent of abch shares in bancabc, in march 2021. promoting financial sector development and inclusion turning to the promotion of financial sector development and inclusion, the bank of botswana recognises, distinguished guests, that in the first instance, the licensing requirements and ongoing prudential supervision are meant to allow those that meet the criteria and operate prudently to pursue their business and profit / return interests and aspirations freely, albeit within a regulated environment that safeguards safety of deposits and integrity and stability of the broader financial system. however, at the same time, the activities and operations of banks play an important role in promoting and fostering economic development, financial discipline and innovation. in this regard, going back to economic history, a preeminent father of the economics profession, adam smith in his classic / seminal works, “ an enquiry into the nature and causes of wealth of nations ”, alluded to “ the invisible hand ”, a concept that describes unseen market forces of supply and demand, leading to the unintended greater social benefits and public good as a result of individuals acting in their selfinterest. hence, the need, as promoted by the bank of botswana, to accentuate the developmental role of banks in the interest of economic prospects and welfare improvements for society. therefore, where opportune and prudent, the bank will continue to implore banks, including access bank, into active participation and contribution to the national development and transformation agenda. distinguished guests, i have, therefore, in my engagement with the leadership of the incoming bank highlighted the pertinent and immediate developmental issues for botswana, where i observed a positive response by access bank, supported by a demonstrable track record in markets in which it currently operates. the overriding issue for botswana is financial inclusion generally, where it is expected that access bank plc will add to vibrancy of market competition and broader coverage in attracting customers, diversity of products and services, quality of service provision and related cost rationalisation, for the benefit of both its investors and customers. beyond this generalisation, there are specific areas of need where the bank of botswana has observed what i would call “ cherry - picking ” of easier to deal with customers and sectors and eschewing of some areas of greater need where the developmental impact can be larger and more pervasive. here i am referring to support for