Stanbic bank hosts a seminar on election risk management strategies
As half of the world population goes to the polls this year with 64 countries gearing up for their general election season, businesses and investors are closely monitoring the unfolding political landscape bearing in mind that abrupt policy changes and shifts in government could have profound effects on the economy.
It was therefore on that backdrop that Stanbic Bank Botswana recently held a workshop to sensitise their commercial clients on the potential risks that might arise because of elections and the possible solutions.
Stanbic also used the platform to present a strong portfolio of Global Markets (GM) Forex (FX) Structured Solutions and Products, part of the Head of Corporate & Investment Banking (CIB) offering.
Speaking at the workshop, Stanbic Global Market Sales-Corporate Onalenna Letlole noted that in 2023 the GDP of Botswana slowed down compared to how the economy performed in 2022. She said the non-mining sector on the other hand is estimated to grow on average by 5.7 percent.
“There might be changes in the government in some countries leading to policy changes. There is a high chance that in the United States for example, Donald Trump might be elected to power and he has already highlighted that he is going to increase tariffs between the US and China. For other states, there might be some volatility in the currencies as the investors become uncertain close to the elections. When there are such kind of changes inflation comes in and the government pick interest rates to manage and put things under control,” said Letlole.
Letlole further highlighted that currently the government has dropped the interest rate from 14 to 3-6% that the Bank of Botswana has set. She anticipated that the government might cut the interest rate by about 0.25 in August when it gets much closer to the October elections.
For his part, Stanbic Bank Botswana Head of Global Markets, Lebea Sephuma said solutions presented by the Bank have all been developed not only with the nuanced experience and understanding of local and global markets, but with a firm appreciation of the evolving social-economic landscape clients operate within.
“Ultimately, as we look to design and shape our growth as individuals and as businesses, we must recognise the different scenarios and influences we each face, and this applies to our clients too. This requires confidence in structured solutions and products that are flexible, relevant, cost-effective, and risk tolerant. This is what our focus has been as Stanbic Bank, because that is what influences growth. Our Structured Solutions now come as a value-add to clients as we work to shape their growth journeys, leveraging our expertise, experience and networks to do so,” said Sephuma