The upcoming National Credit and Collections Convention (NCCC) to be held in Gaborone this week will address challenges associated with the absence of the Credit Act in Botswana like ineffective credit risk management and collection strategies.
NCCC which is hosted by RedCom will apart from analyzing credit risk management and collection strategies benefits investigate the other advantages of having the Credit Act in place.
In addition, Botswana will benchmark from South Africa on how the credit industry is regulated. For instance, the South African National Regulation Council (SANRC) has done a lot in terms of regulating the credit industry and as well as investigating complaints.
A Credit Act in essence seeks to promote a fair and non-discriminatory marketplace for access to consumer credit among other issues. It will regulate credit providers like banks, micro lenders, retailers and all other businesses that provide loans or charge interest on overdue accounts.
Botswana has no regulation for the entire credit industry; over and above statistics indicate that Batswana are knee-deep into debt in most cases credit for consumption not credit for production.
“The entire credit industry in Botswana needs to be regulated as this has an incremental effect on economic growth,” said Nkosi Mwaba the chairman at RedCom.
Mwaba said with an Act in place it gives people the right to apply for credit, the right not to be discriminated against when applying for credit, the right to be given reasons for the credit the person is applying for in case that credit is being declined amongst other things.
“We have cases of abuse of consumers by lenders, with an act in place these issues can be easily dealt with,” said Mwaba.
He said it is his expectation that Botswana learns how South Africa has promoted the development of an accessible market and to make it easier for historically disadvantaged people of low income to have access to the credit market. Nomsa Motshegare who is CEO of the National Credit Regulator (NCR) in South Africa is expected to share her proficiency in the credit industry during the convention.
“We are fortunate to be joined by such an influential and well respected player in the credit fraternity. We are confident that Motshegare will deliver thought provoking insight and share her vast knowledge and experience with the delegates,” Mwaba said.
The one-day event will be attended by credit managers, collectors, sales executives, accountants, legal practitioners. Some of the topics include Effective Credit Risk Management, Cash-flow Optimisation, Legislation and Effective Collection Strategies.