- Tsaone Segaetsho
Absa Bank Botswana has highlighted ongoing efforts to address persistent financing challenges faced by small and medium-sized enterprises (SMEs) operating within the logistics sector—an industry seen as integral to Botswana’s ambitions of becoming a regional trade hub under the African Continental Free Trade Area (AfCFTA).
Despite its strategic importance to regional integration and domestic economic growth, the logistics SME sector continues to struggle with access to suitable financial instruments. According to Absa, traditional banking models have often fallen short in accommodating the operational realities of logistics businesses, which typically function within interdependent networks where disruptions in one node can cascade across the entire value chain.
In response, the bank has introduced an Ecosystem Banking model aimed at supporting businesses not as isolated clients but as part of broader economic systems. “We recognised that traditional banking approaches were not effective for logistics SMEs,” said Harold Matenge, Head of Ecosystem Banking at Absa Bank Botswana. “Our model focuses on strengthening the entire supply chain, thereby fostering resilience and efficiency across the board.”
The approach combines financial and non-financial tools tailored to the logistics industry. These include solutions such as invoice discounting and asset financing, structured around the sector’s irregular cash flow patterns. In parallel, digital tools have been introduced to support operational efficiency—covering areas such as fleet management and shipment tracking. This builds on Absa’s prior experience deploying similar technology-driven initiatives in agriculture.
Further distinguishing its approach, Absa has adopted a collaborative model involving large corporates across mining, retail and other key sectors. This strategy enables the bank to identify high-potential logistics SMEs within existing supply chains and offer targeted financial support. “When we assess a trucking business, we are not merely reviewing its financial statements,” said Matenge. “We also consider its embedded role in wider supply networks, and structure our support accordingly.”
Spencer Moreri, Absa’s Head of Communications, reinforced the view that ecosystem-focused banking represents a strategic shift in SME finance, positioning the bank to play a more structural role in supporting trade-enabling sectors.
Regionally, Absa’s corporate strategy is grounded in the notion of shared value—linking financial performance to broader societal outcomes. “Our funding decisions are increasingly aligned with long-term developmental goals and the sustainability of the communities we serve,” said the bank.
Speaking more broadly on the sector’s role, Frikkie Coetzee, Head of Sales and Service Enablement for Absa Regional Operations, noted that logistics and transport continue to serve as critical infrastructure in the movement of goods across the continent. He indicated the bank’s focus spans road transport (passenger and freight), freight forwarding, warehousing, and storage, with an emerging interest in aviation.
Botswana’s positioning as an SME-focused economy was recently acknowledged with the country receiving the Best SME Bank – Botswana award at the 2025 Global Banking & Finance Awards.
Among recent interventions was the “Win a Truck” campaign, launched in response to recurring feedback from clients on transport-related constraints. “When SMEs tell us that transportation is their biggest barrier to growth, we understand that these are not isolated complaints,” said Keletso Setimela, Head of Business Banking at Absa. “When a farmer in Mahalapye is unable to access markets, or a manufacturer in Francistown experiences delays, these represent systemic inefficiencies with broader economic implications.”
The campaign, according to Absa, was conceived to respond to these challenges in a tangible way, signalling a more pragmatic and contextual approach to SME development in Botswana’s logistics sector.
