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Botswana’s Deposit Insurance Scheme (DISB) is one of the country pillars of financial stability, created to protect ordinary depositors and reinforce confidence in the banking system.
Operational since July 2023 under the Bank of Botswana (Deposit Insurance Scheme) Regulations, 2023, the scheme guarantees that even if a member bank fails, depositors’ funds up to a defined limit are reimbursed promptly and transparently.
The DISB operates under a “paybox plus” mandate. This means its primary duty is to reimburse depositors in the rare event of a bank failure, but it also plays a proactive role in monitoring risks in the banking sector and working to prevent such failures.
The scheme is governed by the Deposit Insurance Committee (DIC), appointed by the Minister of Finance in 2024, and currently chaired by Clair Mathe-Lisenda, CEO of Botswana Insurance Fund Management (BIFM). The DISB’s leadership also includes experts from the banking, insurance, and academic sectors and the Bank of Botswana, which provides infrastructure and technical support. Here is the full list:
- Clair Mathe- Lisenda (CEO, BIFM) - Chair
- Goememang Baatlholeng (Director, Deposit Insurance Scheme of Botswana) -Ex officio member
- Jairos Josiah (Senior Lecturer, University of Botswana) - Member
- Priscillah Ndadi (Group CEO, Old Mutual Botswana) - Member
- Oabile Mabusa (CEO, Bankers Association of Botswana) - Member
- Patrinah Masalela (Director, Insurance, Ministry of Finance) - Ex officio member representing the Permanent Secretary in the Ministry of Finance
- Sheila Sealetsa (Advisor, Banking, Currency and Settlement Department) - Ex officio member representing the Governor of the Bank of Botswana
Membership and Coverage
Membership of the DISB is mandatory for all commercial banks and deposit-taking institutions licensed by the Bank of Botswana. As of December 2024, the scheme covered 10 member institutions, including all commercial banks and the Botswana Savings Bank. Full member list:
- Absa Bank Botswana
- Access Bank Botswana
- Bank of Baroda (Botswana)
- Bank Gaborone
- BBS Bank
- Botswana Savings Bank
- First Capital Bank
- First National Bank of Botswana
- Stanbic Bank Botswana
- Standard Chartered Bank Botswana
The coverage limit is set at P250,000 per depositor per member institution, which applies equally to individuals and legal entities, regardless of nationality. This level of protection, one of the highest in Africa, ensures that 77.5% of small retail depositors are fully covered, though these represent only 12.3% of total deposits by value. The limit is periodically reviewed based on economic conditions, fund size, and public policy objectives.
How the Fund Works
At the heart of the scheme is the Deposit Insurance Fund (DIF), a pooled reserve financed by premium contributions from member banks, as well as seed capital from government. The Fund’s purpose is to ensure that depositors can be compensated quickly and without disruption in case of a bank’s insolvency.
In its first full financial year, 2024, the DISB collected P31.2 million in premiums, charged at a flat rate of 0.1% of insurable deposits. The Fund also received P15 million in government seed capital and P10 million in membership fees, bringing its total balance to P40.98 million by December 2024.
To preserve and grow the Fund’s capital, the DISB invests in Botswana government treasury bills and bonds. By the end of 2024, P55 million had been invested across these instruments, in line with its conservative investment policy focused on liquidity and safety.
Financial Performance and Stability
According to the audited financial statements for the 18 months ending December 2024, the DISB reported a total comprehensive income of P30.98 million, driven largely by premium contributions and investment income.
At year-end, the Fund’s assets totalled P56.26 million, comprising government securities (P37.8 million), cash (P18.3 million), and receivables. The target fund ratio, the Fund balance as a proportion of insured deposits, stood at 0.08%, up from 0.04% in 2023 but still well below the 2% international best-practice benchmark. The DISB acknowledges this gap and plans to grow the Fund through continued premium collections and investment returns.
Ensuring Financial Stability
Beyond deposit protection, the DISB is part of Botswana’s broader Financial System Safety Net, alongside the Ministry of Finance, the Bank of Botswana, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), and the Financial Intelligence Agency. Together, these institutions monitor systemic risks and coordinate responses to potential financial crises.
In 2024, no member bank showed signs of distress, and all reported profitability. However, the DISB highlighted that large deposits, comprising 40% of total deposit liabilities, remain volatile, while core deposits, typically more stable, account for only 9%. The scheme continues to collaborate with other regulators to strengthen early-warning systems and crisis-preparedness frameworks.
It also became a full member of the International Association of Deposit Insurers (IADI) in late 2024, aligning Botswana with global standards and best practices in deposit insurance.