Covid 19 Bank Guarantee Scheme


Any business located in Botswana owned by citizens or non-citizens can apply for a loan with its commercial bank or any commercial bank in Botswana.  The main purpose of the loan will be to offer relief to the Covid-19 affected businesses and to reiterate, this loan is offered only to facilitate revival of covid-19 affected business.    You can't buy a building or a machine with this loan.  But you can use the loan to finance your expenses because you suffered a loss during Covid-19 maybe because your business was closed during that time.  You can use the loan to finance your working capital like stocks or book-debts but increase iin stock or debtors should be becuase of Covid-19.  Interest for those loans shoudl be only one-half or 0,5% above the prime rate (ABSA prime rate 7.25%, for example in June 2020).  Applicatons for loan guarantees will have to be made by the financing bankers on or before 30th November 2020 and the Botswana Export Credit Insurance (BECI) will administer the scheme on behalf of the Ministry of Finance of Government of Botswana.  The loan that you business can apply for will be based on your turnover.  The loan can not exceed P 2 million if your turnover is P 5 million or less; it can't exceed P 5 million if your turnover is P 10 million or less; the loan can't exceeed P 10 million if your turnover is not more than P 25 million.  Your business can avail P 25 million loan if the turnover is over P 50 million.  This guarantee will expire in 2022, the latest.  Again, Government of Botswana is offering this guarnatee to cover only 80% of the loss that the Bank may suffer in the event of non-recovery.

Practically speaking, please do a self-assessment.  Did your business get affected by Covid-19?  How much money you will need to make turnaround or recovery and make sure that you don't take more than a maximum of 2 years to implement the recovery plan.  Please don't ask for full amount that you may be eligible for, but rather ask for an amount that your business will be able to pay back and at the same time recover from the crisis. 

Use this form - to make enquiries with us.  We wish you well.

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Contact us by phone 267 3912805 or submit your questions, comments, or proposal requests.

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Guru Gurumoorthi
Chairman (Role: Oversight | Client and Human Relations and Development | Governance, Risk and Compliance)