linah k mohohlo : promoting competitive, cost - effective banking in botswana keynote speech by ms linah k mohohlo, governor of the bank of botswana, at the official launch of capital bank lilmited gicc, gaborone, 28 may 2008. * * * i am most grateful to the board and management of capital bank for inviting me to be the guest speaker on the occasion of the launching of their bank in botswana. let me begin by recognising the presence of the governor of the reserve bank of malawi, mr victor mbewe, who has timed his visit to botswana to coincide with the official opening of capital bank. his welcome presence this evening is testimony to the regulatory and supervisory collaboration between the two sister central banks ; the reserve bank of malawi and the bank of botswana. capital bank limited ( capital bank ) is a subsidiary of first merchant bank of malawi, and was granted a commercial banking licence by the bank of botswana in december last year. at the time of licensing first merchant bank ( fmb ), which is headquartered and operating mainly in malawi owned 51 percent of the shares of capital bank. the remaining 49 percent of the shares are held by citizens of botswana, kenya and the united kingdom. one of the attractions of the bank ’ s application for a banking licence was the parent bank ’ s proven track record and strength in financing small and medium scale enterprises ( smes ). as you know smes play a major role in contributing to sustainable economic growth and poverty reduction. therefore, access to credit is crucial for their survival. based on the performance of the parent bank in malawi, it is my hope that capital bank will leverage on its experience and infrastructure in servicing this niche market in botswana, and in so doing, contribute to sustainable economic growth and job creation. i am further encouraged to learn that capital bank has expressed commitment to offer good quality service, accompanied by positive real interest rates on savings and competitively priced banking products. this suggests that the bank is fully aware that it will grow its business and prosper only when customers receive the standard and quality of service to which they are entitled. master of ceremonies : capital bank establishes its presence in botswana at a time when competition in the banking sector is intensifying. you will recall that in 2006, the market witnessed the entrance of a regional bank ; and hot on the heels of that bank, capital bank has come to being ; this brings the number of commercial banks operating in our country to

as well. the oecd estimates that nearly one in ten occupations could be automatable over the next few years. 10 politicians have a responsibility to create the conditions needed for new, future - proof jobs. people who are affected by globalisation or, for example, by digitalisation also have to be capable of recognising and taking advantage of opportunities in a changing environment. education is the key to this. in a recent interview, nobel prize winner robert shiller pointed out that the united states has been lagging behind for some years now. in germany, too, the business community has bemoaned the insufficient credentials of many young job applicants. but education cannot just be confined to the first third of a person ’ s life. rather, learning should be a lifelong process. for employers, this basically means that they need to facilitate access to professional training and development for their staff. 6 / 8 bis central bankers'speeches and at the same time, a targeted tax and transfer system should be designed to cushion social hardships. 8 conclusion ladies and gentlemen, the united states, germany and also europe are facing very similar challenges. the persistent economic upswing is giving policymakers greater opportunities to actively shape these challenges – just as it lies in their hands to preserve and strengthen free trade and the rulebased multilateral trading system. i ’ ve already indicated that i currently see no reason to believe the situation will escalate into a fullblown trade war – and that ’ s not chiefly the optimist in me speaking, but the analyst. the particular interests of the countries involved should prevail. in the long term, after all, protectionism leads to a dead end. open, competitive markets, on the other hand, boost productivity and prosperity. they allow everyone to do what they are best at and also ensure that innovation spreads quickly. today, let ’ s use thanksgiving as a chance to be thankful that poverty has decreased and prosperity increased worldwide over the past few decades – the result of competitive, open markets. at the same time, we have to set out the tasks that currently have to be faced, of which there are many. one such important task is to maintain transatlantic links, preserving the partnership between the united states and europe – and germany. on that note, i ’ d like to thank you for inviting me here today. 1 see deutsche bundesbank, the potential macroeconomic impact of us tax reform, monthly report, february 2018, pp