Expat financial advisor in Botswana

Expat financial advisor in Botswana – that will be the topic of today’s article.

I will compare some of the options available locally, alongside more portable, online, and international options like what we offer.

For any questions, or if you are looking to invest as an expat, you can contact me using this form, or via the WhatsApp function below.

It makes sense to have a portable option as an expat, as opposed to a localized one, and that is something we specialize in. 

Introduction

Botswana is located in the center of southern Africa, between South Africa, Namibia, Zambia and Zimbabwe. One of the poorest countries in the world since independence in 1966, it has quickly become one of the world’s development achievements.

Significant wealth of minerals (diamonds), good governance, prudent economic management and a relatively small population of just over two million have turned it into an upper middle income country that plans to transform and become a high income country by 2036.

Political status: Botswana’s stable political environment includes a multi-party democratic tradition, with general elections held every five years. The ruling Democratic Party of Botswana has been in power since 1966. Botswana held its 11th general election on 23 October 2019 and His Excellency President Dr. Mokgwitzi Eric Masisi became President.

Economical status: Botswana has historically experienced strong and stable growth since independence, with substantial fiscal reserves and prudent policies playing a key role in protecting the economy.

More recently, however, the limitations of Botswana’s diamond-based development model have become more apparent: growth is slowing, inequality remains high, and job creation is limited. At the same time, heightened diamond market volatility, including growing competition from synthetic diamonds, reduced Southern African Customs Union transfers and fiscal expansion, have eroded budget buffers.

The COVID-19 disturbed the existing growth and brought enough problems, which resulted in an estimated 7.9% contraction in real gross domestic product (GDP) in 2020, the largest ever. This decline reflects the impact that declining global demand, travel restrictions and social distancing have had on production in key manufacturing and export sectors, including the diamond industry and tourism.

Botswana’s fiscal deficit has reached to 11.3% of GDP in fiscal 2020-2021, up from 5.6% in fiscal 2019-2020, reflecting a sharp decline in mining revenues, tight public sector wages and the impact of costs of COVID-19. Likewise, the current account deficit is estimated to have widened to 8 percent of GDP in 2020 following a sharp decline in diamond exports.

Events in the global diamond industry will have a noticeable impact on the short-term recovery given Botswana’s dependence on this rough. While an economic recovery is expected in 2021 due to favorable outlooks for the diamond industry, the economic impact of COVID-19 is likely to be deep and long-term.

Social status: The living conditions of the people of Botswana have improved and the poverty rate has dropped significantly. The proportion of the population living on less than US $ 1.90 a day at 2011 purchasing power parity declined steadily from 29.8% to 18.2% between 2002-03 and 2009-10 to 16.1% in 2015-16. This decline in poverty, vane very rapidly and can be attributed mainly to a combination of increases in agricultural incomes, including subsidies, and demographic changes.

Progress in poverty reduction has been accompanied by an increase in overall welfare. The growth rate of consumption per capita between 2009-10 and 2015-2016 for the bottom 40 percentiles of the population was 0.42% per year, which is higher than the growth rate for the top 60 percentiles. However, Botswana’s performance was only in the middle of the global welfare distribution.

Inequality has also declined, although it remains high. Between 2010 and 2015, Gini inequality declined from 60.5% to 53.3%. Among the factors associated with declining income inequality in Botswana, the key is regional convergence due to rapid rural growth and demographic changes.

A recent multidisciplinary study of Botswana: the labor force module shows that the unemployment rate has risen to 24.5%, with youth unemployment (32.4%) being a serious problem. Addressing these challenges will require improving the quality of infrastructure (water and electricity), basic basic services (education, health and social safety nets), as well as accelerating business reforms and effectively supporting entrepreneurship.

Botswana for expats

Botswana, located in southern Africa, is a landlocked, peaceful country offering promising expatriate experiences. Its recent rapid economic growth has attracted many foreign investors, who have also been lured by the preferential tax system. The country is known for its transparency regarding these investments, which has made Botswana a stable and interesting destination for expatriates.

Botswana prides itself on being one of the most economically, politically and socially stable countries in Africa thanks to its long-lived multi-party democracy, which allows multiple parties to participate in national elections and become part of government, alone or in coalition. and through its position on human rights and anti-corruption.

Botswana has a subtropical climate with average temperatures ranging from 28 ° C to 21 ° C. It is rainy season from December to March, and there can be dust storms in August that can affect visibility.

Pros of living in Botswana

  • Botswana can be an incredibly affordable place to live, especially if expats are good at managing their finances. Gaborone is ranked low on Mercer’s Cost of Living Index and is more affordable than most of the other 200 cities listed. Its favorable exchange rate also attracts people from the US, UK and Europe.
  • Given the decent cost of living in Botswana, it follows that housing can be found at good prices. Both rent and utilities are cheaper than what many expats are used to, and housing standards are also high. Many expats stay in gated communities that are well protected and air conditioned to save lives during the hottest months.
  • Low crime rate compared to neighboring countries. Botswana has no recent history of terrorism and violent attacks on tourists are rare. Walking alone in any street of the city may be safer than in South African other countries, but expats still need to take the necessary precautions.

Cons of living in Botswana

  • Health care can get expensive, but healthcare is very important and getting an insurance is a must. These costs add up quickly. In some cases, the healthcare system may not be able to cope with specific illnesses and major surgeries, so patients need to be sent to facilities overseas, such as South Africa. Repatriation insurance is likely to be more expensive.
  • Pay attention to the details of the lease. Landlords can mention rent increases over time. Therefore, expats should pay attention to the standard rental prices in their area and agree on a fee that suits both parties. Fortunately, the rent often includes all utilities, including water and electricity.
  • Botswana is a developing country and a big part of population is living in poverty. With great inequality in the country, crime really does exist. Foreigners should be aware of the rise in petty and violent crime in cities such as Francistown, Maun and Gaborone. Robberies and thefts occur, valuables should not be left in plain sight in parked vehicles.

Sometimes, expats may need a help of a financial advisor during the time you live and work in a country such as Botswana. That is why in this article we will be mainly focused on the profession of a financial advisor, how he can help you, what are the main responsibilities.

The most important thing for many of us is that we often cannot control our cash flows. As a result, we will have a hard life, we do not understand where our funds are going. Or maybe you are an expat and don’t know how to invest, save or store your funds in another country.

In today’s life cycle, we are all unwittingly involved in an endless financial movement. After all, every day we carry out various monetary transactions, and it depends only on ourselves how voluntary this movement will be on the scale of our entire life.

To manage the future, you need to:

  • Manage your cash flows;
  • Transform the future into a set of clear, measurable financial goals;
  • Make a plan to achieve these goals;
  • Carry out your plan.

This is a common situation that financial advisors work with. Along with this, special cases are also possible.

Usually we already clearly see our financial goal and understand what mission we are striving for. We only need a specialist who will help us with this, choose the right strategy for achieving the goal. Here we need to find a specialist who can offer the best tools for solving important problems. In both cases, a personal financial advisor will be helpful.

What is a financial advisor?

A financial advisor is a very important person. He is an investment specialist who knows how to save and multiply funds. He assesses the financial condition and resources of his client, develops an investment policy for him, a scheme for working with banks, brokerage and insurance companies, helps him make financial decisions and manage the budget. Ideally, a consultant is able to solve all the financial problems of a company or individual.

This is a specialist who advises on financial policy issues at different levels. He can work both as an individual and in the status of a legal entity. This does not change its function.

He advises clients on saving or increasing money, assesses their financial condition, develops an investment policy, a scheme for working with banking institutions, and makes management decisions. And most importantly, it helps expats understand the financial system of the country they are moving to.

Today we will mainly focus on three main categories of financial advisors, namely:

  • bank financial advisors
  • local financial advisors
  • online financial advisors

The advisor must be well versed in a specific area of ​​finance, but can also be a multidisciplinary professional.

Bank financial advisors

Moving abroad, mainly expats start their financial careers by opening a bank account. Choosing the right bank and the right account is a rather complicated process that you will have to figure out on your own. Foreigners in Botswana need to consult with a bank financial advisor to make sure they have made the right choice.

This type of financial advisor is very necessary when expats are dealing with various types of banking services. One of the most important things expats will need when investing is a savings account.

A savings or investment account is a type of account that offers customers an easy way to withdraw or deposit money anytime, anywhere without restrictions. It is the best choice for both those who want to keep their money safe and those who need to use their money every day.

Here are some of the top banks in Botswana you can trust:

Absa Bank Botswana

Absa Bank Botswana, formerly known as Barclays Bank of Botswana Limited, is a commercial bank in Botswana licensed by the Bank of Botswana, the country’s central bank and national banking regulator.

Absa Bank Botswana is a large financial services company serving corporate clients, high net worth individuals, retail clients, and small and medium enterprises. As of June 2019, the bank had BWP assets: 17,963,238,000 (US $ 1.609 billion), and BWP’s equity: US $ 2,103,780,000 (US $ 188,438 million).

This bank is a subsidiary of Absa Group Limited, a financial services conglomerate headquartered in South Africa with subsidiaries in 12 African countries and with assets exceeding US $ 87 billion as of June 30, 2017, whose shares are traded on the Johannesburg Stock Exchange under the symbol ABG.

BancABC

BancABC, officially known as ABC Holdings Limited, is a pan-African financial services provider headquartered in Gaborone, Botswana.

BancABC is a financial services provider in South and East Africa. As of December 2015, the assets of the bank group were estimated at approximately USD 1.81 billion, and equity capital at USD 115.75 million. BancABC has subsidiaries in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe with plans for expansion to Angola, South Sudan and Uganda.

First Capital Bank Botswana Limited

First Capital Bank Botswana Limited, a commercial bank in Botswana licensed by the Bank of Botswana, the central bank and national banking regulator. It is a subsidiary of FMBCapital Holdings Plc, a Mauritius-based financial services conglomerate listed on the Malawi Stock Exchange and has subsidiaries in Botswana, Malawi, Mozambique, Zambia and Zimbabwe.

The bank began operations in 2008 after the issuance of a banking license by the Bank of Botswana, the national banking regulator. Capital Bank introduced internet banking in 2009 and Visa debit cards in 2010. In 2019, the bank successfully acquired the assets and liabilities of another commercial bank, now the former Bank of India (Botswana) Limited.

Local financial advisor

There are many misconceptions about the role of a financial advisor and the differences between financial market professionals. The reality is that having an expert to help you navigate the financial market and choose your catering investment based on your individual needs can be extremely beneficial in the long run. Especially local fiduciary consultants who are legally and ethically obligated to always put you first.

Many people prefer a local financial advisor because of the convenience, interaction, and more. Here are the main reasons and benefits of choosing a local consultant:

Personal communication

Yes, some people only trust personally, especially when it comes to money. If you are uncomfortable doing business online, a local financial advisor may be the right fit for you.

Many people prefer personal, human contact – especially the older generation raised on bricks and mortars rather than doing business online, which is why a local financial advisor is the preferred advisor.

Aside from managing your investment portfolio, the benefits of a traditional local financial advisor include the ability to discuss your questions and concerns as often as you want, anywhere.

Face-to-face meetings can help you clarify your costs and goals by making an assessment appointment and scheduling regular reviews. All consultants are individual, which is why it is so important to take a close look and ask questions to find someone who suits your individual needs.

Local experience

Botswana is a foreign country and for many expats the laws may be different, investment options, savings accounts and more may require different skills.

The key decision is a local financial advisor. They are usually educated and focused on the laws and regulations they follow in the country. So they are a great resource if you want to invest locally to drive growth in your area, city, or state.

Keep in mind that local investment can bring you two rates of return, one directly for your portfolio and the other through your community. There is growing evidence that, compared to their non-local counterparts, local businesses have two to four times the impact on local economic development for every dollar spent on them.

So, if you have an investment portfolio that includes local businesses, your dollars will continue to circulate and increase the well-being of your entire community by creating new jobs, increasing income, and ultimately supporting funding for schools, parks, police. and fire services; and safe and prosperous areas.

An expert, local financial advisor can help you with due diligence to make sure your local investment makes sense.

Online financial advisors

This is by far the best option. The concept of having a financial advisor on the Internet is a relatively new concept.

This is a model that has successfully proven itself in all developed countries. Millennials and Generation Z are used to interacting with people on the Internet. Whether you share selfies with friends and family on Facebook and Instagram, or via Skype video calls, we are open to daily online communication with those who matter to us.

Here are some of the benefits of an online financial advisor who will tell you about the benefits of a financial advisor who uses technology and wants to contact you.

Different locations

If you’re in a relationship and your finances are combined, your financial planner needs to talk to both of you, so we’re all on the same page.

There is nothing worse when a partner tries to explain to another partner a conversation they had with their financial planner (they said something about money by mistake …)

However, in today’s society, getting both of you in the same room in one place can be extremely difficult.

You might both be at work, or one might be at home with the kids and the other might be at work.

Having an online financial planner solves this problem. You can join a video conference wherever you are, and your partner can also join the same conference.

You all get the same message and know exactly where you are with your finances and what next steps you need to take to achieve what you want.

Online documentation

Financial planning requires tons of documents. Those who receive basic financial planning advice will easily find hundreds of pages of documentation with advice included in it.

There will be many documents that will also require your signature. Where do you keep all this documentation? Especially if you love to travel? As an online finance consultant, we are taking advantage of technological advances. Therefore, we can safely send you all these documents online by email.

But the most interesting thing is that you can put your electronic signature! Use a few clicks to sign documents to flip your superuser, customize attachments, and implement Plan B.

All of these documents will be securely posted on an online portal that only you and your online financial advisor have access to.

Many people can approach this with skepticism, which also has its own explanation. It’s a relatively new concept and it’s hard for people to get used to some of the things that can also be done on an online platform, but it’s a great tool that saves you time and benefits in the first place.

This is all the information you need to know about how to get a financial advisor in Botswana to help you with every financial goal you need to achieve. The choice is, of course, up to you, but online financial advisors are definitely winning this competition.

Adam is an internationally recognised author on financial matters, with over 316.3 million answers views on Quora.com and a widely sold book on Amazon

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