literacy and capability in developing countries form a significant barrier to accessing and effectively using financial services. financial literacy is the acquisition of knowledge on financial products and services ; while financial capability refers to the application of the financial knowledge gained into desirable financial behaviour. without financial capabilities, a financially literate individual may not increase savings and investment or reduce debt and risky financial behaviour. therefore, financial institutions have to re - direct their financial inclusion strategies to incorporate enhancement of the financial capabilities of their customers. it is in this regard that financial capability is an integral part of financial inclusion ; hence, effective empowerment strategies for financial capability need to focus on providing practical, easy - to - understand and impartial advice so that consumers can make informed decisions. as you would be aware, in general, the rate of financial inclusion is relatively low in sub - saharan africa and other the emerging market economies. for example, according to the 2014 finscope survey, more that 68 percent of the adult population in botswana have access to financial services ; this compares with 58 percent in namibia, 70. 3 percent for south africa ; 39 percent in mexico and 53 percent in india. overall, the average financial inclusion measures for south asia and latin america as well as the caribbean are lower than those for botswana at 46. 6 percent and 51. 4 percent, respectively. in contrast, financial inclusion is high in the developed countries. according to the world bank, 94 percent of adults in 35 high income organisation for economic cooperation and development ( oecd ) countries had access to financial services in 2015. ladies and gentlemen, as in other countries, the main policy objective of the financial inclusion agenda in botswana is to improve household welfare, increase economic efficiency and support inclusive and sustainable economic growth. in this regard, advances in technology, have engendered an increase in opportunities and scaling up of financial inclusion. thus, modern communications infrastructure, particularly mobile money and advances in the payment systems and platforms, play a significant role in financial inclusion. thus, the availability of userfriendly and cost - effective information and communication products and platforms play an important role in broadening safe and secure access to financial services. notably, we have seen a significant increase in the number and functionality of automated teller machines, including deposit - taking machines ; mobile money remittances and payments service ; internet and web - based access and transacting ; and the promotion of card payments. these platforms augur well for enhanced financial inclusion. notwithstanding, i wish to implore banks

of financial services, including interest - bearing accounts, credit and insurance. research by the world bank, conducted in 137 countries from 2005 to 2011, observes that lack of access to finance constitutes a major problem for households and acts as a barrier to the growth of small enterprises. it is therefore evident that financial inclusion empowers poor households and small enterprises by bringing them into the mainstream economy thereby reducing extreme levels of poverty and inequality. there is also evidence, based on a number of research work, that financial inclusion promotes economic development, especially for women, and that financially empowered women are more likely to improve social welfare. overall, women ’ s financial exclusion limits the growth - promoting potential of finance and it may also prove costly in terms of elevated risks to financial stability. distinguished guests, in recognition of this developmental impact, financial inclusion is becoming a global priority for policy makers, regulators and development agencies. among others, financial inclusion has been identified as an enabler for seven of the 17 sustainable development goals. in this regard, the world bank group considers financial inclusion as a key enabler in reducing extreme poverty and boosting shared prosperity, and has, therefore, put forward an ambitious global goal to attain universal financial access by 2020. furthermore, the g20 has committed to advancing financial inclusion worldwide. distinguished guests, one area in botswana where there has been a significant impact, and continues to provide a huge potential, is the nondiscretionary savings, in the form of defined contribution pension schemes. it is notable that the pension fund industry in botswana has grown substantially in the last two decades, mostly driven by establishment of the botswana public officers pension fund in 2001. as at the end of 2016, pension funds assets amounted to p75 billion or 44 percent of national income ( nominal gdp ) compared to total banking assets of p81 billion. in this regard, the pension industry was a major driving force behind the cumulative expansion of the financial sector in the past ten years ; 100 percent growth in real terms, compared to 52 percent for the economy as a whole. however, the main beneficiaries and industry customers continue to be the long - term employed, to the exclusion of the traditionally disadvantaged cohorts. therefore, national policy and the financial sector should increasingly find solutions to provide wider coverage for retirement funds to include the self - employed and younger generation. distinguished ladies and gentlemen, let me now to turn to financial literacy as a key component of financial inclusion. experience has shown that low levels of financial