Category: Sunday Standard

Fresh information suggests that the Directorate on Corruption and Economic Crime (DCEC) case against former minister Noah Salakae, Tau Grading (Pty) Ltd, its directors and lawyer may be deeply personal as key players with a tangled history collide in court.

It has emerged that the lead investigator in the corruption case acted as a lawyer for the accused persons before joining the DCEC to investigate them.

The revelation is just one strand in an increasingly tangled web of lawyers, politicians, vehicles and alleged favors.

At the heart of the storm is Thabo Malambane, DCEC deputy Director General and attorney.

Malambane is part of the team that investigated corruption allegations against Salakae, Tau Grading founder Rudy Lemcke, Chief Executive Officer (CEO) Hugo Lemcke, Chief Accountant Seby Jose, Permanent Secretary Ken Ketshajwang and lawyer Mompati Sepego.

The state alleges that Tau Grading bribed Salakae with P1.6 million, a Toyota Fortuner, as well as bush clearing services for the award of the P1.5billion Ghanzi-New Xade road construction project.

Before joining DCEC, Malambane allegedly acted as a lawyer for Salakae and Tau Grading.

Malambane was part of the team that investigated allegations that Tau Grading bribed Salakae with a Toyota Fortuner. The allegations followed revelations that Salakae had been using a Fortuner purchased by Tau Grading.

Sunday Standard investigations have uncovered another intriguing vehicle link, suggesting that Malambane also benefited from a similar favour by Tau Grading.

A few weeks before joining the DCEC, Malambane drove around in a Toyota Hilux double cab bearing registration B111BPD.

A Sunday Standard ownership search with the Department of Road Transport and Safety (DRTS) revealed that the car is registered under Maun Quarries.

A further CIPA search revealed that Maun Quarries shareholders are Christian Rudolf Lemcke and Hugo Johannes Lemcke.

The cross directorship between Maun Quaries and Tau Grading suggests that the two are sister companies.

In another curious development, it emerged that around the time Tau Grading allegedly allowed Salakae to use its Toyota Fortuner in the run up to the 2024 parliamentary elections, the company also provided his political opponent, BDP candidate John Thite with a Toyota Hi-lux twin cab.

Both men were competing for the same parliamentary seat. Both benefited from vehicles provided by Tau Grading. Among those who backed Salakae’s candidacy was Malambane.

Whatever happened between Salakae, Tau Grading and Malambane is now the subject of fierce speculation. But one thing is beyond doubt, the relationship has turned bitter. In Parliament last week, Salakae launched a blistering attack on what he called ‘ a notorious senior officer’ at DCEC. He accused the officer of sponsoring corruption allegations against him. Then came another broadside. At a kgotla meeting in Ghanzi, Salakae made reference to ‘ the young officer from DCEC’ and vowed to take him on in court,

The extraordinary public confrontation has transformed what might otherwise have been a straightforward corruption investigation into a much wider controversy.

On Friday, the controversy branched off into a political scene as the Broadhurst Magistrates Court was packed to the rafters by two busloads of Salakae’s political supporters.

Hundreds of supporters who drove the more than 600km overnight from Ghanzi arrived in court Friday morning wearing T-shirts emblazoned with Salakae’S face on the front and ‘ eseng mogo Salaka’ (Don’t touch Salakae) written across the back. The dramatic show of support suggested the corruption case hsas already become deeply political.

All the key players in what promises to be a brutal marathon trial share a deeply entangled history.

THE 2013 MURDER CASE

In February 2013, while he was still Principal Magistrate in Ghanzi, Malambane sparked a national outcry when he granted unconditional bail to two murder suspects-Tshiamo Kalalelo and Mmika Mpe-less than 14 days after they were arrested for the gruesome murder, robbery and rape of their employer, Johanna Reinette Vorster.

Hours after Malambane granted them bail, the two accused were re-arrested in a separate stock theft case.

In protest, Malambane demanded answers why the matter was secretly moved from his docket in Ghanzi to a court in Gaborone without his consent. Viewing this as administrative overreach and an assault on his judicial independence, Malambane boycotted all cases before his court until he received an explanation.

He was subsequently summarily dismissed from the bench for gross misconduct and insubordination after he refused an order from the Acting Chief Justice to resume his judicial duties. He unsuccessfully challenged his dismissal at the Court of Appeal (CoA) in 2021.

Incidentally, attorney Charles Tlagae, who is part of the current Tau Grading defence team, was the family lawyer for the slain Reinett Vorster and her husband Leon Vorster at the time.

THE TAU GRADING CONNECTION

After his dismissal from the judiciary, Malambane stayed in Ghanzi and continued to practice as a private lawyer. Sunday Standard is informed that Tau Grading was one of his major clients over the years. Tau Grading employees have indicated that Malambane has represented the company as a lawyer.

SALAKAE and TAU GRADING

The relationship between Salakae and Tau Grading dates back to 2013, when current General Manager John Motsumi introduced him to Head of Finance Jose Seby.

Motsumi would then become Salakae’s Campaign Manager in the 2014 general elections, which he successfully contested against then Member of Parliament (MP) Johnny Swartz.

Salake lost to John Thiite by only 176 votes in 2019. At the time, both candidates maintained a close relationship with Tau Grading and continued to enjoy its support.

In October 2024, just two weeks before the general elections, Tau Grading borrowed Salakae a Toyota Fortuner for use during his elections campaign. The same courtesy was extended to his opponent, John Thiite, who was also lent a Toyota Hilux Double.

However, sources have indicated that Salakae returned the Fortuner to Tau Grading in September 2025.

THE BNF WINDFALL

Salakae’s prosecution is widely viewed as a continuation of the factional fights within the ruling Botswana National Front (BNF). The Ghanzi North MP is regarded as a fierce critic of some close allies of President Duma Boko. Reference is routinely made to Salakae’s explosive letter announcing his resignation from the BNF Central Committee, in which he alleged that the party was run by Boko’s bodyguards. Meanwhile, Salakae’s loyalists shot salvos at the BNF leadership during the Monday kgotla meeting. Councillor Soso Saidoo has been summoned for a disciplinary hearing after he publicly declared that the charges against Salakae were fueled by internal party politics and described BNF Vice President Moeti Mohwasa as ‘evil.’

Sunday Standard is informed that the BNF is also a beneficiary of Tau Grading’s benevolence. Party insiders have revealed that Tau Grading paid for over 20 buses to transport activists to the party national congress in Palapye and further paid for transport (10 buses) and food (P100,000) at the BNF national conference in Jwaneng. However, Tau Grading General Manager John Motsumi has denied any knowledge of such funding.

‘I am not aware of any funding of that nature from Tau Grading to BNF,’ he said in response to questions from Sunday Standard.

In politics, yesterday’s executioner can become tomorrow’s accused. That is what makes the possible addition of former minister and Permanent Secretary to the President Eric Molale to the Noah Salakae corruption case so politically intriguing.

On the surface, it is another corruption prosecution involving a multibillion-pula government tender. Beneath that, however, lies a story stretching back more than a decade, a story involving a dismissal letter, a defiant magistrate and the long memory of Botswana’s public institutions.

Today, Salakae and several co-accused stand before the courts over allegations linked to the P1.5 billion Ghanzi-New Xade road project. Prosecutors allege that Tau Grading and its officials offered Salakae a P1.6 million cash bribe, a Toyota Fortuner and bush-clearing services in exchange for influence over the award of the contract. The allegations remain untested in court and all accused persons are presumed innocent.

The case has already become politically charged. Salakae has publicly accused a senior DCEC official of pursuing him for personal reasons and later directed his criticism at Deputy Director Thabo Malambane, a former magistrate who rose through private legal practice to become one of the most senior anti-corruption investigators.

Yet if Molale is ultimately added to the charge sheet, the spotlight may shift from Salakae’s allegations to a far older chapter.

For it was Molale who signed the letter that ended Malambane’s judicial career. The story begins in Ghanzi in 2013. Then Principal Magistrate Thabo Malambane found himself at the centre of national controversy after granting unconditional bail to two men accused of the murder of Ghanzi farmer Reinett Vorster. The decision provoked outrage. Matters escalated when the suspects were subsequently re-arrested on separate charges and a related case was transferred from Ghanzi to Gaborone without Malambane’s approval. Viewing the move as interference with judicial independence, he boycotted court proceedings and demanded answers from his superiors.

The standoff ended badly. The Acting Chief Justice ordered him to return to work. Malambane refused. The dispute quickly evolved from a disagreement over judicial independence into a confrontation over authority itself. Government concluded that Malambane’s conduct amounted to insubordination.

On April 2, 2014, President Ian Khama decided to dismiss him. The man tasked with delivering the decision was Erik Molale. In a letter signed in his capacity as Permanent Secretary to the President, Molale informed Malambane that Khama had considered his explanations and determined that his refusal to obey a lawful order constituted gross misconduct justifying summary dismissal. The letter ended Malambane’s career on the bench with immediate effect.

At the time, few would have imagined that the paths of the two men would cross again in such dramatic fashion. Malambane remained in Ghanzi after his dismissal and established himself as a private attorney. Years later he would re-emerge in public service, joining the Directorate on Corruption and Economic Crime and eventually rising to become deputy director.

Molale, meanwhile, went on to become a cabinet minister before retiring from public service.

Now fate appears to have brought them back into the same story. The corruption investigation that has engulfed Salakae and Tau Grading originated within the DCEC before being handed to the Directorate of Public Prosecutions. The prosecution recently informed the court that another suspect is expected to be added to the case. Sources indicate that person is likely to be Molale.

Whether Molale is eventually charged, and whether any charge can be sustained, remains a matter for the prosecution and ultimately the courts. The evidence, not history, will determine guilt or innocence. Salakae’s supporters have sought to portray the case as a product of personal vendettas. So far, they have offered no evidence linking the charges to the alleged personal differences between Malambane and the accused persons.

Yet the symbolism surrounding Molale and Malambane is impossible to ignore. Twelve summers ago, one man signed a letter ending the other’s career. Today, the man who received that letter occupies a senior position in the institution whose investigation may help place the retired former Permanent Secretary and cabinet minister before a criminal court. Is Malambane finally having his revenge?

Botswana’s business community expects the economy to recover modestly this year, but the outlook remains clouded by weak demand, constrained government spending and high financing costs.

The Bank of Botswana’s June Business Expectations Survey shows firms expect national output to expand by 2.1 percent in 2026, following a 0.7 percent contraction in 2025. Growth of 1.3 percent is expected in the second quarter and 1.8 percent in the third quarter.

Despite the expected recovery, businesses remain cautious about near-term conditions. Firms in construction and real estate, finance, retail, accommodation, transport and communication, and manufacturing were pessimistic about the second quarter.

The concerns extend into the third quarter, with pessimism reported among retail, accommodation, transport and communication, construction and real estate, and agriculture firms. Mining and quarrying businesses were neutral.

The survey points to Botswana’s weak fiscal position as an important drag on activity. Lower government revenue, partly linked to weaker diamond export earnings, has constrained cash flows and limited government spending. Businesses also cited the exchange rate as a concern because of the economy’s heavy reliance on imported inputs.

Cost of finance was identified as the biggest factor hurting business operations during the second quarter. High borrowing costs, collateral requirements and cautious bank lending were cited as constraints. Some firms are responding by relying more heavily on retained earnings: their share rose to 53 percent from 50 percent in the previous quarter, while preference for loans fell from 43 percent to 28 percent.

The outlook improves further ahead. Firms are optimistic about conditions over the 12 months to June 2027, particularly in manufacturing, construction and real estate, retail and related services.

Export-oriented firms are already more positive, suggesting the weaker pula may be improving their competitiveness. Overall, the survey presents a recovery that remains tentative.

Botswana’s wheat production is falling further behind the needs of the country’s milling industry, leaving millers increasingly dependent on imports to keep factories supplied.

Bokomo chief executive Werner de Beer said wheat production had declined by 10 percent, with local output unable to make a meaningful dent in demand.

The scale of the gap is stark. De Beer said Botswana’s annual wheat harvest was estimated at about 6,500 tonnes, against monthly industry milling requirements of roughly 14,000 tonnes.

Maize faces a similar imbalance. Botswana produced about 1,500 tonnes last year, while millers collectively process around 16,000 tonnes a month, he said.

Local maize and wheat production therefore accounts for only about 10% of the market, according to de Beer, leaving the industry reliant on imports.

Millers source most maize from South Africa, while wheat supplies come from countries including Brazil, Lithuania, Germany and Mexico. De Beer said tariffs in South Africa and supply disruptions linked to the war in Eastern Europe had made diversification necessary.

‘The only bright spot in the local grains sector is sorghum,’ he said, adding that domestic production was sufficient to meet demand.

The dependence on imported grain leaves Botswana exposed to international prices, freight costs and geopolitical disruptions, with changes in any of these factors potentially feeding through to food prices.

Millers are nevertheless trying to make local grain more competitive. Under an agreement involving farmers, millers, input suppliers and government, locally produced grain is bought at the regional SAFEX price plus an 8% premium. Millers also subsidise half the transport costs for farmers in remote production areas such as Pandamatenga and the Tuli Block.

Standard Chartered Bank Botswana expects its pre-tax profit for the six months to June 2026 to rise by between 16 percent and 26 percent, according to a cautionary announcement issued to the Botswana Stock Exchange.

The bank expects unaudited consolidated profit before tax to increase by between P22 million and P36 million from the P140 million reported for the corresponding period in 2025. This puts the expected half-year profit before tax in a range of approximately P162 million to P176 million.

The announcement does not give reasons for the expected improvement, leaving details on the bank’s underlying performance to its full half-year results.

Standard Chartered Botswana said the results for the period ended June 30 will be published before the end of September, when shareholders and investors will receive a fuller picture of the bank’s performance.

The cautionary notice was issued in line with Botswana Stock Exchange listing requirements, which require companies to alert the market when there is reasonable certainty that expected profit or loss before tax will differ by at least 10 percent from the previous corresponding period.

The bank stressed that the figures contained in the announcement are unaudited and that the final results may differ from the current estimates. Investors have consequently been advised to exercise caution when trading in the company’s securities until the full results are released.

For now, the bank’s guidance points to another period of profit growth, but provides little indication of whether the improvement came from stronger lending, investment income, lower costs or other parts of the business. Those details will only become clear when the full results are published.

Financially hamstrung Botswana Fencing Federation (BFF) remains determined to expand its international footprint and build a stronger pathway for local fencers. The BFF missed both the recent Commonwealth Games and the Junior World Championships due to an acute lack of funds. Despite these challenges, the federation continues to find ways to give some of its athletes some international exposure.

This year, two senior fencers, Koketso Masena and Aobakwe Modise, were sent to the World Senior Championships in Hong Kong. Two others, Katlego Poonyane and Modise, represented Botswana at the African Championships in June.

BFF Public Relations Officer, Thabile Pilane says the federation was encouraged by the exposure gained. This is despite being unable to send full teams which include coaches to the events. While acknowledging that sending individual athletes instead of teams was not ideal, she says the federation was determined to improve its representation at future competitions.

‘It is not completely bad because we managed to have some exposure internationally, although we sent one person instead of a team. In future we would like to try and send a number of players.’

Despite the financial challenges, the federation continues to organise local competition to keep its athletes active and competition ready. ‘We managed also to have a tournament around March. That is how we keep our players active, so that they are always ready to compete. At any point in time, we can pick from the rankings for these international games when we get the proper funds and the support that we need,’ Pilane says.

With no sponsors on board, the federation currently relies largely on parents and individuals willing to provide financial assistance. ‘We have willing individuals and parents, but it is not stable to run a federation like that.’

‘Our federation is in dire need of sponsors to enable it to grow and gain the recognition it deserves and be part of the strong codes for Team Botswana,’ the BFF PRO emphasises.

Pilane says that while the federation’s mother bodies have supported them, assistance often comes at the last minute, making long-term planning difficult. The federation has since intensified efforts to secure partnerships and sponsorships. Among those recently approached is the Embassy of China in Botswana.

‘We approached the Embassy of China to Botswana because there is another tournament in Hong Kong coming up. We want to take the junior team that didn’t manage to go to the Commonwealth, so that they get that experience and exposure,’ she explains.

In the interim, the BFF is also preparing to host an international local tournament on 19 September 2026 in Gaborone. Athletes from other countries are expected to participate. The competition will cater for junior, senior and cadet categories.

While funding setbacks continue, the federation’s message is one of perseverance: keeping athletes active, seeking partnerships and creating opportunities so that Botswana fencing can eventually compete internationally with full teams and the support structure it deserves.

As the BFF moves towards its elective Annual General Meeting, Pilane says the current committee is still committed to advance the interest of the federation. She says as the committee, they acknowledge that there are still shortcomings, particularly in its efforts to move Botswana up from its current tier to the top tier. Despite these, they remain committed to building on the progress made through a number of initiatives planned for the future.

Bakang Seretse and his companies, Khulaco Proprietary Limited and MandB Properties, have applied to have Court of Appeal President Tebogo Tau and Justice Isaac Lesetedi recuse themselves from a pending appeal over interest earned on restrained funds. They argue that the two judges have already expressed views that create a reasonable apprehension of bias.

The application arises from a dispute over who is entitled to interest generated from millions of pula that were frozen under the Proceeds and Instruments of Crime Act before being released following the collapse of the state’s forfeiture case against Seretse and his companies.

At the centre of the matter is an Appeal in which the Attorney General is challenging a High Court judgment by Justice Zein Kebonang that awarded Seretse, Khulaco and MandB Properties interest accrued on restrained funds.

Seretse argues that Tau and Lesetedi should not sit on the appeal because they recently formed part of a three-judge panel that delivered judgment in a separate but related case involving the same P42 million payment made to Khulaco under a contract linked to the National Petroleum Fund.

According to the application, the July 31 judgment, authored by Justice Edwin Cameron and concurred in by Tau and Lesetedi, contained findings that characterised the transaction and Seretse’s conduct in strongly negative terms. Seretse points to passages in which the court referred to ‘sticky fingers’, suggested that ‘a monstrous heist was in the making’, and stated that a ‘whiff of fraud’ lingered around the transaction.

He argues that those findings went beyond procedural issues and amounted to judicial conclusions about his honesty and the legitimacy of the underlying transaction.

Seretse contends that the remarks are difficult to reconcile with an earlier Court of Appeal judgment delivered in 2022, which dismissed the state’s forfeiture appeal and accepted that the P42 million payment had a contractual basis.

‘The cumulative effect of those findings was to judicially characterise me as having participated dishonestly in a transaction involving the appropriation of Government monies,’ Seretse states in his affidavit. He argues that because the present appeal concerns funds connected to the same underlying transaction, a reasonable and informed observer could conclude that Tau and Lesetedi have already formed views on issues that may arise in the matter. The Attorney General opposes the application.

The Attorney General argues that the recusal bid is not based on dissatisfaction with an unfavourable judgment but on concerns about the appearance of impartiality.

Seretse and Co maintain that the test is not whether the judges are actually biased, but whether there is a reasonable apprehension that they may not approach the pending appeal with an open mind.

The dispute stems from lengthy litigation over funds linked to the National Petroleum Fund. The Directorate of Public Prosecutions previously sought forfeiture of assets connected to Seretse and his companies, but both the High Court and the Court of Appeal dismissed those efforts. After the restrained funds were released, a fresh dispute emerged over interest that accrued while the money was held in interest-bearing accounts.

In the recusal application, Seretse asks that Tau and Lesetedi step aside and that the matter be reassigned to a differently constituted Court of Appeal panel.

Former Transport and Infrastructure Minister Eric Molale is expected to be added to the sprawling corruption case involving his successor, Noah Salakae.

This follows an announcement by the prosecution that they will amend the charge sheet to add another suspect before pleas are taken.

Information gathered bySunday Standard suggests Molale is the unnamed suspect the State referred to when the matter came before the Broadhurst Regional Magistrates’ Court on Friday. Prosecutors told the court that another suspect would be joined to the proceedings and that the charge sheet would be amended before all accused persons enter their pleas.

The development adds another spin to the controversial corruption case involving P1.5 billion Ghanzi-New Xade road construction project, which the prosecution believe was initiated during Molale’s tenure as Minister of Transport and Infrastructure in 2024.

Molale and the lead investigator in the case, Thabo Malambane have a controversial history. Molale, then Permanent Secretary to the President (PSP)signed the 2014 letter firing Malambane from his position as Principal Magistrate, based in Ghanzi. The letter, signed by Molale stated that, ‘Consequently, I am directed to inform you that His Excellency has, in exercise of the powers vested in him by section 104 (2) (b) of the Constitution, decided to dismiss you from your position as Principal Magistrate with immediate effect’.

It remains unclear what role Molale is alleged to have played in the procurement process currently before court.

Salakae was arraigned alongside Tau Grading and Building Construction (Pty) Ltd, its managing director Hugo Johannes Lemcke, accountant Seby Jose, company director Christiaan Rudolf Lemcke, retired former permanent secretary Kgakgamalo Ken Ketshajwang and attorney Mompati Patrick Sepego.

The seven accused face charges of corrupting a public officer, corruption, abuse of office and money laundering arising from allegations that inducements were paid to secure the lucrative road contract. According to the charge sheet, Tau Grading, its officials and others allegedly offered Salakae P1.6 million in cash, a Toyota Fortuner valued at P575,000 and bush-clearing services as rewards for influencing and ensuring the signing of the contract in favour of the company.

The State alleges that the benefits were linked to the Ghanzi-New Xade road construction project, a government contract valued at P1,535,503,969.39.

Prosecutors allege that, while serving as minister, Salakae used his office to obtain the cash, vehicle and services before influencing the award of the multibillion-pula contract to Tau Grading. The charge sheet further alleges that the P1.6 million was later used to acquire portions of a farm in Ghanzi, while the bush-clearing services were performed at his in-laws’ farm and a lodge he leased.

Ketshajwang, the former permanent secretary in the ministry, is accused of abuse of office after allegedly approving the direct appointment of Tau Grading despite the project requiring selective procurement. Prosecutors contend that the decision prejudiced other companies that could have competed for the contract.

The money laundering count alleges that the accused knowingly transferred and concealed proceeds of crime, including routing the P1.6 million through a Bank Gaborone account held by Sepego before using part of the funds to purchase farm portions in Ghanzi. Prosecutors further allege that efforts were made to disguise ownership of the property by registering it in the name of Salakae’s wife and later a company.

The possibility of Molale being joined to the proceedings could significantly widen the scope of the case, particularly if the state established that decisions relating to the road project were taken before Salakae assumed office. The matter returns to court on October 9, 2026 when the amended charge sheet is expected to be presented and the accused called upon to plead.

GABORONE – Stanbic Bank Botswana marked the culmination of its Transact to Win campaign with a Grand Finale held in Gaborone North, bringing to a close a campaign that rewarded clients for their everyday banking activity.

Delivered in partnership with Visa, the Swipe, Pay, Send to Win campaign saw customers rewarded for transactions including card payments, eCommerce purchases and Instant Money transfers. The finale took place at the site of the campaign’s grand prize, a newly constructed sustainable fully- furnished Legae Home valued at P980,000, located in Gaborone North.

Throughout the campaign, customers stood a chance to win weekly cash prizes, with sixteen winners selected during each weekly draw. Qualifying winners received P2,500, while customers who transacted using a Stanbic Bank Point of Sale machine stood a chance to receive P5,000.

The Grand Finale saw the campaign’s biggest prizes awarded. Tsarona Rabakane walked away with the newly constructed fully- furnished sustainable Legae Home valued at P980,000. Goena Esi Bareetseng received P100,000, while Odirile Elias received P50,000. Stanbic Bank Botswana also covered all costs associated with transferring the grand prize property to its new owner.

The sustainable home formed an important part of the campaign’s broader focus on rewarding customers with a prize designed to deliver lasting value. Beyond home ownership, the grand prize reflects Stanbic Bank Botswana’s continued focus on supporting more sustainable choices and encouraging greater awareness of how sustainability fits into the everyday lives and aspirations of Batswana. This builds on the Bank’s wider sustainability efforts, including the recent launch of its Sustainability Academy, aimed at building greater understanding of sustainability and supporting the shift towards more environmentally responsible practices.

Speaking at the event, Stanbic Bank Botswana Chief Executive, Chose Modise, said the campaign reflected the Bank’s commitment to creating meaningful value for clients while encouraging greater adoption of convenient banking solutions.

‘Transact and Win reflects a simple principle for us. Banking should create meaningful value in people’s lives. Today, we celebrate a client reaching the significant milestone of owning a sustainable home, one that represents security, dignity and the opportunity to build for generations. This is the kind of progress we want to enable for our clients and for Botswana, while supporting a future where economic growth and sustainability move together.’

For Tsarona Rabakane, the Grand Finale marked a significant milestone as she received the keys to the sustainable Legae Home.

‘I am so happy to have won this home, I don’t know what to say, thank you so much Stanbic Bank Botswana, I didn’t know that I was actively taking part in a competition, I was just doing my everyday transactions’ said Tsarona Rabakane.

The campaign was open to eligible Stanbic Bank Botswana customers aged 18 years and above, including qualifying credit, prepaid and debit cardholders, as well as customers using the Stanbic Bank App, USSD and Internet Banking.

Customers qualified through everyday banking activity, including using their debit, credit or prepaid cards, making eCommerce payments or completing at least three Instant Money transfers per month during the campaign period.

Beyond the grand prize, the campaign recognised customers consistently throughout its duration. In total, 64 customers received weekly cash prizes, with P 240 000 awarded over the course of the campaign.

Modise added that the sustainable Legae Home represents the kind of long-term progress the Bank seeks to support for its clients.

‘Home ownership is an important aspiration for many Batswana, and increasingly, the conversation around home ownership must also consider how we build and live more sustainably. We are proud that the grand prize brings these two ambitions together. We congratulate all our winners and thank every client who participated in the campaign and made this journey a success.’

As the Transact and Win campaign closes, Stanbic Bank Botswana remains focused on delivering banking experiences that reward clients, encourage convenient ways of transacting and support sustainable, long-term progress.

If Botswana government were to experience a serious financial crisis, would local banks survive? This is the question will be keeping a number of local bankers awake at night, following a warning by international risk analysts, that government debt problem is increasingly becoming a bank problem.

Finance Minister Ndaba Gaolathe’s growing reliance on commercial banks to finance government’s widening fiscal gap is raising concerns that a severe deterioration in Botswana’s public finances could eventually spill over into the banking sector, exposing lenders to losses and threatening financial stability.

International risk analysts Business Monitor International (BMI), said this month that sovereign borrowing, weak credit growth and structural funding vulnerabilities would remain key challenges for Botswana’s banking sector. BMI noted that banks remain well-capitalized, profitable and liquid, but warned that rising government financing needs are creating a more difficult operating environment.

BMI pointed out that the potential danger is the growing sovereign-bank nexus, the financial interdependence between a government and the banks that finance it. If government finances were to deteriorate into a full blown crisis, banks holding substantial amounts of government securities or other sovereign exposures could find themselves caught in the fallout.

In its latest assessment, BMI says Botswana banks are already responding cautiously to weak lending, rising sovereign exposure and funding risks. The concern, is not that Botswana banks are currently failing. It is that their financial health could increasingly become tied to the government’s financial health.

The warning comes as Gaolathe on Thursday asked Parliament to consider a fresh package of Government Bills, including legislation seeking authority to borrow US$270 million (approximately P3.6 billion) from three of the country’s major commercial banks to finance the 2026/2027 budget deficit.

The Syndicated Loan Facility (Loan Authorisation) Bill, 2026 (Bill No. 29 of 2026) seeks parliamentary approval for Government to raise the funds from ABSA Bank Botswana, First National Bank Botswana and Stanbic Bank Botswana.

The latest borrowing proposal comes against a backdrop of repeated approaches by Government to commercial banks for funding. This has raised questions about how far the State can continue leaning on the domestic banking system without increasing systemic risks.

BMI says Botswana’s banks remain fundamentally strong, but warns that their resilience is being tested by growing sovereign exposure, weak lending and funding vulnerabilities.

‘While banks remain well capitalised, profitable and liquid, subdued economic activity and rising government financing needs are contributing to a more challenging operating environment,’ BMI says.

There is already evidence of a crowding our risk against the private sector, as government borrowing is tightening conditions under which private sector credit is available.

The report suggests that the warning is significant because banks are already retreating from traditional lending to businesses and households.

According to BMI, client loan growth fell from an already weak 2.5% year-on-year in January 2026 to minus 0.2% in May, reflecting weak demand for credit amid a difficult economic environment.

At the same time, banks are increasingly placing money in government securities and other liquid assets.

BMI says asset growth has continued to outpace loan growth, with banks increasingly channeling funds into government securities as they prioritise balance-sheet protection over aggressive lending.

This creates a potentially uncomfortable paradox for Botswana’s economy: banks have money, but businesses are struggling to borrow, while Government is increasingly becoming a major destination for that liquidity.

The latest P3.6 billion borrowing request therefore risks further strengthening what BMI calls the ‘sovereign-bank nexus’ or the growing financial interdependence between Government and commercial banks.

BMI notes that the Financial Stability Report has warned of ‘rising sovereign exposures’, persistent liquidity pressures, funding concentration risks and growing interconnectedness between banks and non-bank financial institutions.

The latest borrowing request is also not an isolated development. In March, Gaolathe tabled legislation seeking parliamentary approval to raise up to US$216.67 million, about P3 billion, through another syndicated facility involving ABSA Bank Botswana, First National Bank Botswana and Stanbic Bank Botswana to help finance the national budget.

Earlier this year, Parliament also considered a P750 million loan from Standard Chartered Bank Botswana, with Government saying the facility was urgently required to address a backlog of outstanding Government invoices.

Government has previously tapped commercial-bank financing through facilities including a US$90 million, approximately P1.2 billion, Stanbic Bank Botswana facility, as well as large euro-denominated facilities involving Standard Chartered Bank Botswana.

The succession of borrowing arrangements has intensified concerns that commercial banks could increasingly become an extension of Government’s financing machinery.

BMI says the risks are amplified by Botswana’s deteriorating fiscal position.

It forecasts the budget deficit to widen to 4.7% of GDP in FY2026/27, from an estimated 4.4% in FY2025/26, while public debt is projected to rise to 33.1% of GDP in 2026.

The Government has already proposed increasing the statutory debt ceiling from 40% to 60% of GDP.

BMI says the sovereign-bank relationship is deepening as banks increase their holdings of government securities and participate in public-sector funding initiatives.

‘The FSR continues to warn that the sovereign-bank nexus is deepening,’ the report says.

Yet the banks are not entering this environment from a position of weakness.

Their capital adequacy ratio stood at 21% in the first quarter of 2026, well above the regulatory minimum of 12.5%, while the non-performing loan ratio remained stable at 3.5% in May.

The danger, therefore, is less about an immediate banking collapse and more about the gradual crowding out of private-sector financing and the concentration of financial risk.

BMI expects loan growth to recover to only 5% by the end of 2026, below projected asset growth of 7.3% and deposit growth of 8.3%.

Meanwhile, On its facebook page the ministry said Gaolathe will also move a motion seeking Parliament’s approval to raise the ceiling on the Government Bond Issuance Programme from the current P55 billion to P85 billion.