Invitation for Contributions- Proposed First Draft of the Non-Bank Lenders Act

SUBJECT: Invitation for Contributions- Proposed First Draft of the Non-Bank Lenders Act

1. The non-bank lenders in Botswana are regulated by the Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) as per the NBFIRA Act of 2016.  The non-bank lending sector constitutes of micro lenders, pawnshops, finance and leasing companies. These entities are involved in the business of extending credit to the general public. The NBFIRA and its parent ministry, the Ministry of Finance and Economic Development (“MFED”), have resolved to develop a consolidated Act called the Non-Bank Lenders Act (“NBL Act”), from which industry-specific regulations will be promulgated.  
2. In pursuit of the aforementioned initiative, the Regulatory Authority invites you to share your comments on the first draft of the Non-Bank Lenders Act (herein attached) for your review.
3. The proposed Act is a consolidation of the regulatory frameworks for micro lending, pawnshop, finance and leasing entities as the industries are similar at a broad level; and where there are variations, there will be industry-specific Regulations, specifying the requirements for each industry.

4. NBFIRA will conduct a virtual consultative meeting for existing non-bank lenders at a date to be communicated, where non-bank lenders will be provided a platform to share contributions to the Act.

5. Members of the public are encouraged to share their written comments, suggestions and feedback to the email address provided below, on or before 30 October 2020.

6. All communication must be emailed to gsechele@nbfira.org.bw, bpelaelo@nbfira.org.bw or emogotsakgotla@nbfira.org.bw

Download the proposed Act at: https://www.nbfira.org.bw/proposed-draft-non-bank-lenders-act