Sustainable Development Goals

The Sustainable Development Goals (SDGs) are a proposed set of targets relating to future international development. They are to replace the Millennium Development Goals once those expire at the end of 2015. The SDGs were first formally discussed at the United Nations Conference on Sustainable Development held in Rio de Janeiro in June 2012. On 19 July 2014, the UN General Assembly's Open Working Group on Sustainable Development Goals (OWG) forwarded a proposal for the SDGs to the Assembly. The proposal contained 17 goals with 169 targets covering a broad range of sustainable development issues.  On 4 December 2014, the UN General Assembly accepted the Secretary-General's Synthesis Report which stated that the agenda for the post-2015 SDG process would be based on the OWG proposals.

The Intergovernmental Negotiations on the Post 2015 Development Agenda (IGN) began in January 2015 and ended in August 2015. Following the negotiations, a final document was prepared for adoption in the UN Sustainable Development Summit September 25th-27th, 2015 in New York, USA.

On 2nd of Aug 2015, 193 countries arrived at a consensus on the following seventeen proposed goals:

1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its impacts
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.

In the coming weeks, Finance First Botswana will be taking a journey with you to discuss each goal in detail. Happy reading :) 

Press Release:Bank of Botswana Reduces Bank Rate

BANK OF BOTSWANA 
Press Release
Monetary Policy Committee Meets August 6, 2015 

 Introduction
The meeting of the Monetary Policy Committee held on August 6, 2015 concluded that the medium-term outlook for price stability remains positive, with the forecast inflation remaining within the 3 – 6 percent medium-term objective range.

Economic Outlook and Assessment of Risks
Global output is projected to grow by 3.3 percent in 2015 compared to the estimated 3.4 percent in 2014 and the forecast of 3.8 percent for 2016. However, growth performance differs across regions, with geopolitical risks and challenges relating to economic restructuring in both developed and emerging market economies constraining medium-term prospects. For Botswana, GDP growth is estimated at 4.6 percent in the twelve months to March 2015 compared to 7.9 percent in the corresponding period in 2014. This reflects the 2.5 percent and 5 percent expansion in mining and non-mining output, respectively. Inflation increased from 3 percent in May to 3.1 percent in June 2015, mainly due to an increase in housing rentals. Low domestic demand pressures and subdued foreign price developments contribute to the positive inflation outlook in the medium term. However, this is subject to downside risks arising from the sluggish global economic activity and associated weakness in commodity prices. The inflation outlook could be adversely affected by any unanticipated large increase in administered prices and government levies, as well as international oil and food prices beyond current forecast.

Monetary Policy Stance The current state of the economy as well as the domestic and external economic outlook, including the inflation forecast, suggest that easing monetary policy is a step in the right direction; it would be consistent with maintaining inflation within the Bank’s medium-term objective range of 3 – 6 percent.
Accordingly, the Monetary Policy Committee decided to reduce the Bank Rate by half a percent to 6 percent. Consequently, all commercial banks are required to make the necessary interest rate adjustment immediately to reflect this policy decision.

Source: http://www.bankofbotswana.bw/

Ways To Stretch Your Pula

The last  two weeks of the month are often the hardest wallet-wise because of the not so wise spending decisions we make after receiving our paychecks. But this shouldn't be the case friends, we have to make sound financial decisions. I hope you find the following tips helpful;

1. Carry small amounts of cash: in this way you are limiting your spending. Often times we get carried away with our spending, ladies more especially. When you find a sale at a store you wouldn't want to miss it for anything. But that's a really bad habit. Exercise  a bit  of discipline no matter how  bad you  want to buy that item. Carrying  small cash can deliver you from the temptation of wanting to biy if you really can't control  yourself.

2. Eliminate or control your use of credit cards: if possible reserve your credit  card usage for rainy days or for  transactions that strictly require credit  card as a mode of payment.

3. Buy only what you NEED versus  what you WANT: you should be able to tell the difference between the two. Wants change every minute, honestly you just can't keep up otherwise  you will end up buying  everything  in the store.

4. Use a grocery  shopping  list and stick to it: don't even be shy about it, those that you are trying to impress will not be with you when you are thebeless. Take  your written savings goals  as a reminder when you go shopping.

5. Cook meals at home  and pack lunch to work instead of eating out everyday: it doesn't make you less cool but rather  puts you in control of your money. Imagine  the P25 or so  that  you can save everyday, in just one week you could save P125 and in one month P500.

If you are tired of being broke my friend then it's high time you create  that financial action plan. Put into practice  the tips shared as well as more tips that you come across daily.

Botswana Boasts Sound Banking Sector

Press release

The banking sector, through which most payments take place, is stable and profitable, President Lt Gen. Seretse Khama Ian Khama has said.
President Khama said this during the launch of new family of Botswana coin held in Gaborone on February 27 stating that more banks had recently established a presence in the country.
He said all the positive developments were testimony to the confidence the public and international community had in the national currency, and to the widely attested record of prudent economic management, for which the country was rightly recognised.
The government, he said, had continued to uphold the principles of prudent economic management because it was vital to do so in the interests of long-term sustainable economic growth. "We have continued a programme of fiscal consolidation, despite the challenges arising from upheavals in the global economy," he said.
He said it was of critical importance to avoid a possible accumulation of unsustainable public debt that could, if left unchecked, undermine the stability of the currency and the economy generally.
President Khama quoted the Minister of Finance and Planning's budget speech which stated that, "it is important that the country returns to budgetary surpluses which stand us in good stead in times of economic downturn."
Bank of Botswana, he said, had supported economic growth principally by ensuring that the rate of price increases benign, in line with its mandate of fighting inflation. Inflation had to a large extent been kept at low and sustainable levels in response to monetary policy, which has been adjusted from time to time, as necessary.
The bank rate, he said, had been reduced by two percentage points since April 2013, such that market interest rates were supportive of domestic activity, as well as the government's objectives of economic diversification and job creation.
President Khama stated that the objectives were further supported by the exchange rate policy, the parameters of which were recently made public by the Minister of Finance and Development Planning with a view to anchor public expectations of the Pula exchange rate.

BARCLAYS BANK OF BOTSWANA PART 1

We are starting a discussion on the financial institutions in Botswana. You need to be strategic when opening a bank account. Know the products offered by your bank and compare them with products offered  by other banks.

Let us start our discussion with the Barclays Bank of Botswana

Barclays Bank is Botswana's leading commercial bank that employs 1,247 people and have 43 branches and 115 ATMs throughout the country. It has been voted the Best Bank in Botswana for more than 3 years in a row by Euromoney and EMEA Finance.

Barclays makes a positive impact in communities and individuals. They believe that, as one of Botswana's oldest corporate citizens, they have a responsibility towards improving the quality of life of citizens.They take pride in the Barclays F. G Mogae scholarship fund, which is just one of the ways they touch the lives of the people around them.

History

Barclays opened its doors in Botswana in 1950 with the first branch in Lobatse. They expanded their network until 1975 when they became an incorporated company in Botswana. They are now publicly listed on the Botswana Stock Exchange.

First Barclays Bank buildings in Lobatse

 Products

Barclays offers various products specially customised for individual needs of its customers. Products range from motshelo account, kgomotso funeral plan, lekgolo saving account, hello money among others.

Barclays Motshelo Account

 

Many people belong to groups that save money to achieve a common goal. These groups save for all sorts of things:

• Burial societies
• Family events
• Christmas groceries
• Holidays
• Sunday soccer teams
• Birthday celebrations
• Even bigger projects and major purchases

If you belong to a savings group, the Barclays Motshelo Account is an ideal place to put your group’s money.

Here’s what the Barclays Motshelo Account gives you:

• It’s safe and secure
• You’ll get free funeral cover of P2,000 each for 10 nominated members
• There’s a free cheque book
• They send free SMS alert notifications so that you can track account activity
• They give an attractive interest rate for a better return on your savings
• Then interest is paid into the account monthly
• You can make free cash and cheque deposits
• Your members can put their money in by free standing orders
• You’ll need to put in an opening amount of P500

To open a Barclays Motshelo Account, you need to have at least three people in your group. Your two signatories should go to their local branch and take along:

• The opening balance of P500
• Their national ID Card or passport
• Address verification documents for signatories ( water/electricity/ phone bill)

Your group does not have to have a formal constitution.

Contact your nearest branch to find out how the Motshelo Account can help you.

On Compound Interest

You need to understand the chat below if you  want to have a lot of money at retirement. 

Young people starting to work can reasonably expect no pension for them come retirement since we live in the age of individual retirement account that gives us more control over our financial future. 

Compound interest can be a young person's best friend provided they start saving early. Saving early is the best thing a person can do for their retirement account. 

Compound interest is just easy mathematics.  When you start saving, that money earns interest. As the interest grows, your money basket grows bigger as well and accrue even more interest. Over the years, that little interest at the beginning makes a very big difference. 

You can see in the chart below that saving a little bit of money annually from the age of 25-35 generates a lot of money at 65 than if a person had started saving even with a lot of money at 35. 

The longer you wait to start saving for retirement the more you miss out on the benefits of the amazing power of compound interest. 

POINT OF SALE MACHINES INTRODUCED AT POLICE STATIONS

This morning we received news that point of sale machines have been introduced at police stations. This makes so much sense as nowadays police charges go up to thousands of pula.

 

It is reported that the machines have been installed at 28 police stations around the country including those in cities and major villages. The Point of Sale Machines will enable the public to use ATM cards to pay where the service has been installed.

The Point of Sale Machines will eventually be rolled out to other police stations in future.

The service is available at police stations from 0730 to 1630 hours during weekdays. The facility is expected to provide convenience for customers to pay for police reports, traffic fines and other offenses where a person has been offered to pay an admission of guilt fine.

The public is informed that conventional method of payment will apply where Point of Sale Machines are unavailable.

TM