There is a strong demand for automotive vehicles, therefore domestic and foreign original equipment manufacturers (OEM) are planning to expand their production bases in Botswana. The govt. of Botswana also prioritizes the automotive sector as a key revenue generator and is encouraging the flow of Foreign Direct Investments (FDIs) within the automotive industry.

As one of the foremost affluent economies in Southern Africa with a strong growth outlook, Botswana is known as home to a growing automotive market.

Automotive Sector of Botswana

The Botswana Automotive Market incorporates a huge competition. Some companies have a presence only during particular geography. The Botswana Automotive market has its impact everywhere the world. On level Botswana, the Automotive industry is segmented on the premise of product type, applications, and regions.

It also focuses on market dynamics, Botswana Automotive growth drivers, developing market segments, and also the market growth curve is obtainable supported past, present, and future market data. Most of the industry plans, news, and policies are presented at a regional level in Botswana.

Scope of the Automotive sector in Botswana

Botswana is one in every of the foremost promising and fastest-growing automobile markets within the region. Botswana industry is upheld by various factors, for instance, labor availability, R&D efforts, geographic advantage, and government support. With a positive outlook for the economy and greater household purchasing power.

Botswana Automotive market is checked out against five of its serious markets within the district to dissect the task of Botswana on territorial front and benchmark its tasks.

The government of Botswana also prioritizes the automotive segment as a key revenue generator and is encouraging the flow of FDIs within the automotive industry.

Future of Automotive industry in Botswana

The automotive industry is one in every of Botswana’s strongest value propositions is its location. it's both in close proximity to the biggest automotive market in Africa, in addition, because the largest automotive manufacturer and exporter in Africa − both being South Africa.

Botswana has a plus of delivery time over major competitors in Asia, Europe, and North America. that's why, Botswana incorporates a proven diary in supply to the African components market, increasing its component exports tenfold within the past few years.

Key points of the automotive market in Botswana

New players stick with it foraying into the market, specifically in low-cost vehicle sections with the number of sales expanding at strong development rates. future vehicles and other business vehicles are additionally seeing a homogenous increment in demand.

Cost-effective models tend to witness strong success because the majority of car buyers segment includes the centre class. Further, strong customer support and availability of cheap spare parts gain high priority for purchases within the car segment.

The growing impact of digital technology in various sectors of the economy, specifically the financial services sector (as Fintech) is squarely on the agenda for regulators and supervisory bodies across the globe.

What is Fintech?

Financial developments, combined with the high penetration rate of mobile devices, are enabling many of these currently unbanked adults to approach a monetary assistance stage unexpectedly. It is this necessity, together with the influx of technologies and penetration rates of mobile devices.

Fintech sector in Botswana

Fintech is commonly characterized as new innovation and new developments that are planned for contending with customary monetary techniques in the conveyance of money related administrations.

Fintech brings less expensive and increasingly proficient monetary services.

In Botswana, some commercial banks have held hands with broadcast communications service providers in the provision of e-money benefits, the two services do not need a bank account to use, and they are critical in financial inclusion.

In Botswana, some percentage of the adult population remains unbanked. With Fintech comes decreased banking fees, which in Botswana have been a concern. The concern has been in the form of those engaged in business regionally and internationally.

Fintech is a general term which relates to different types of innovations for financial activity. Here are a few of the major sub-sectors, along with exciting African companies active in these fields:

1.       Block-chain and Cryptocurrency

2.       Innovative Banking

3.       InvestTech

4.       Payment and Remittances

Investment in Fintech

Global investment in Fintech ventures is projected to double in previous years. With the high level of digital penetration and acceptance of alternative platforms for payment and banking, it is safe to assume that Botswana will continue to be a significant player in this market.

The new generation of fintech technologies will increase the inclusion levels of previously unbanked Africans, through building alternative credit histories.  By doing so, a host of citizens will be able to improve their financial standing using the numerous financial tools finally at their disposal. Novel payment methods will save them time and money, while alternative savings options will enable them to grow their net worth.

Challenges for Fintech

The approach of Fintech presents a few difficulties seeing its honesty as a protected and stable method for conveying different services. In view of this, the Fintech division should discuss terms firmly and without a deal with information insurance and the expanding occurrences of cybercrime.

These concerns will apply to developers of Fintech as well as to investors and customers, and therefore will have an impact on product regulation as well as a commercial activity such as M&A, private equity, public offerings, and so on.

Conclusion

Fintech stage and application accessibility will put Botswana at the front line of this industry, basically empowering Africans to jump over conventional, and destined to-be obsolete plans of action and innovations.