Absa Bank Botswana is positioning itself for Botswana’s next mining cycle, with copper emerging as a key growth market as the bank looks beyond diamonds and deeper into the wider mining value chain.
The strategy comes as Botswana seeks to diversify its mineral base following a difficult period for the diamond industry.
Copper production is expanding, with Khoemacau’s planned expansion expected to increase production significantly, while the Kalahari Copper Belt continues to attract investment.
“Our strategy as Absa is to trail the mining industry, but we are moving strongly into copper, not only in the mining industry but the value chain,” Managing Director Keabetswe Pheko-Moshagane said during the bank’s first-half results presentation this week.
Pheko-Moshagane revealed that the bank advanced inclusive economic growth through a strategic Memorandum of Understanding with MMG Khoemacau, creating a platform to expand supply-chain financing, accelerate local enterprise development and enable more Botswana businesses to participate meaningfully in the mining-sector value chain.
She further added that Absa will continue to juggle the different industries and sectors as the risks pivot in those industries.
Maungo Mokotedi who is Chief Credit Officer at Absa Bank Botswana said the bank has a very strong pipeline of renewable-energy projects, with some already at the commissioning stage.
The bnaks’ strategy goes beyond financing mining companies, as Absa sees opportunities across the ecosystem surrounding mining. These include contractors, suppliers, transporters, engineering firms and other businesses supporting mining operations.
This could create opportunities in project finance, working capital, trade finance, foreign exchange and transaction banking.
The focus comes as Botswana pushes for greater local participation in mining. The government has identified mineral diversification and value addition as important components of its economic transformation agenda.
Copper also has growing global relevance, with the demand is being supported by electrification, renewable energy infrastructure, electricity grids and other technologies.
This gives Botswana an opportunity to participate in a market extending beyond traditional diamond mining.
Renewable energy is emerging as another area of growth for the bank.
Maungo Mokotedi who is Chief Credit Officer at Absa Bank Botswana said the bank has a very strong pipeline of renewable-energy projects, with some already at the commissioning stage.
“It is a sector that we see much growth,” he said.
The opportunity aligns with Botswana’s push to expand renewable-energy generation and strengthen energy security. For Absa, these projects create potential demand for long-term financing, project finance, transaction banking and other financial services.
Absa is positioning itself around the capital flows accompanying Botswana’s economic transition from copper extraction and mining services to renewable power generation and the businesses that support both sectors.
This diversification is already reflected in the bank’s first-half performance.
Absa reported P32 million in clean-energy financing to Business Banking customers, alongside P97 million in SME financing.
Meanwhile, the bank’s first-half results show the broader diversification strategy gaining momentum.
Profit after tax increased 18percent to P377 million, while total income rose 14percent to P1.3 billion.
Corporate and Investment Banking increased its contribution to revenue, while Global Markets net trading income rose 157 percent to P262 million.
Non-interest income also grew strongly, supported by foreign exchange, transactional activity and deeper client relationships.
