Capricorn stays the course in Botswana
No expansion plans
The Capricorn Group has reaffirmed its steady, unchanged strategy for Namibia and Botswana, reiterating its commitment to strengthening existing operations in both markets through Bank Gaborone and other subsidiaries, with no immediate confirmed plans for expansion or acquisitions in Botswana.
The position comes as Standard Chartered Bank Botswana, the country’s oldest commercial bank, continues a structured exit process that has attracted interest from several regional and international players. The sale is expected to conclude in 2026–2027, subject to regulatory approvals.
Capricorn Group financial director Johann Maass said the banking group remained firmly committed to its existing footprint in Botswana, centred on Bank Gaborone and micro-lender Peo Finance.
“Our Group’s strategy and growth priorities remain unchanged, as outlined in our 2025 Integrated Annual Report, which was published in September 2025. We remain committed to the countries in which we operate, Namibia and Botswana. There are no immediate confirmed plans for expansion or acquisitions in Botswana by Capricorn Group,” Maass said.
Current status of Capricorn’s Botswana operations
Following a strategic adjustment, Capricorn increased its holding in Capricorn Investment Holdings Botswana (CIHB), according to its September 2025 Integrated Annual Report.
“We increased our shareholding in CIHB to 92%. Despite short-term operational challenges in Botswana, this investment aims to expand market share and diversify income streams,” the group said.
Capricorn noted that 9% of the Group’s total comprehensive income attributable to shareholders was derived from Bank Gaborone, amounting to N$179.1 million through CIHB, while 2% (N$39.8 million) was attributable to Peo Finance. In total, the group realised N$218.9 million from its Botswana operations during the reporting period.
According to the report, Capricorn employed 346 people in Botswana as at September 2025.
“Bank Gaborone has grown to 12 branches and 25 automated teller machines (ATMs) nationwide. Customers can access many banking services 24 hours a day, every day of the year, through smart, secure and convenient electronic channels. These include online and mobile banking services, bulk payment services, ATMs and point-of-sale (POS) devices,” the group said.
Opportunity for growth
Despite its cautious stance on acquisitions, Capricorn views its Botswana operations as a key driver of future growth.
“We can attract new customers and expand our market share by providing better customer service and enhancing our offering. Compared to Namibia, our operations in Botswana have a stronger opportunity to grow market share,” the group said.
In terms of performance, Bank Gaborone’s net interest income increased by 13.8%, supported by continued loan growth, although margins came under pressure.
“The bank’s margins were constrained in the second half of the financial year due to tighter market liquidity conditions. Nevertheless, lower interest rates during the first part of the year contributed to an overall reduction of 1.8% in interest expense. An effective cost-of-funding strategy remains in place to manage interest expense,” Capricorn said.
At group level, Capricorn reported profit after tax of N$1.99 billion for the financial year ended 30 June 2025, representing a 14.8% increase from N$1.74 billion recorded in 2024.
Standard Chartered’s planned exit
Business Day has reported that British multinational bank Standard Chartered has revised its earlier plan to sell only its wealth and retail banking business in Botswana, opting instead to place its entire local operation on the market. The move is expected to draw interest from regional and international banks seeking growth outside their home markets.
The proposed sale now includes the corporate and investment banking division, which has traditionally been a key earnings contributor.
The shift in approach reportedly followed pressure from potential buyers, who favoured acquiring the business as a whole rather than in parts.
The transaction is expected to take up to 15 months to complete. In the region, South African lenders Absa and FirstRand have already agreed to acquire Standard Chartered’s operations in Uganda and Zambia, respectively.
Standard Chartered has exited or scaled back operations in several African markets in recent years, including Zimbabwe, Angola, Cameroon, The Gambia and Sierra Leone.
Fitch Ratings said in a 2024 report that it expected European banks, particularly French institutions, to accelerate divestments from Africa as part of broader strategic realignments.
British multinational bank HSBC exited South Africa in 2024, transferring its clients, assets and liabilities to FirstRand and Absa, as global banks struggled to compete in markets dominated by strong domestic lenders. French bank BNP Paribas wound down its corporate and investment banking operations in South Africa two years earlier, ending a 12-year presence.
Standard Chartered Bank Botswana is the country’s oldest and first commercial bank, having opened in Francistown in 1897, well before Botswana’s independence.
-Additional reporting by Business Day.
The position comes as Standard Chartered Bank Botswana, the country’s oldest commercial bank, continues a structured exit process that has attracted interest from several regional and international players. The sale is expected to conclude in 2026–2027, subject to regulatory approvals.
Capricorn Group financial director Johann Maass said the banking group remained firmly committed to its existing footprint in Botswana, centred on Bank Gaborone and micro-lender Peo Finance.
“Our Group’s strategy and growth priorities remain unchanged, as outlined in our 2025 Integrated Annual Report, which was published in September 2025. We remain committed to the countries in which we operate, Namibia and Botswana. There are no immediate confirmed plans for expansion or acquisitions in Botswana by Capricorn Group,” Maass said.
Current status of Capricorn’s Botswana operations
Following a strategic adjustment, Capricorn increased its holding in Capricorn Investment Holdings Botswana (CIHB), according to its September 2025 Integrated Annual Report.
“We increased our shareholding in CIHB to 92%. Despite short-term operational challenges in Botswana, this investment aims to expand market share and diversify income streams,” the group said.
Capricorn noted that 9% of the Group’s total comprehensive income attributable to shareholders was derived from Bank Gaborone, amounting to N$179.1 million through CIHB, while 2% (N$39.8 million) was attributable to Peo Finance. In total, the group realised N$218.9 million from its Botswana operations during the reporting period.
According to the report, Capricorn employed 346 people in Botswana as at September 2025.
“Bank Gaborone has grown to 12 branches and 25 automated teller machines (ATMs) nationwide. Customers can access many banking services 24 hours a day, every day of the year, through smart, secure and convenient electronic channels. These include online and mobile banking services, bulk payment services, ATMs and point-of-sale (POS) devices,” the group said.
Opportunity for growth
Despite its cautious stance on acquisitions, Capricorn views its Botswana operations as a key driver of future growth.
“We can attract new customers and expand our market share by providing better customer service and enhancing our offering. Compared to Namibia, our operations in Botswana have a stronger opportunity to grow market share,” the group said.
In terms of performance, Bank Gaborone’s net interest income increased by 13.8%, supported by continued loan growth, although margins came under pressure.
“The bank’s margins were constrained in the second half of the financial year due to tighter market liquidity conditions. Nevertheless, lower interest rates during the first part of the year contributed to an overall reduction of 1.8% in interest expense. An effective cost-of-funding strategy remains in place to manage interest expense,” Capricorn said.
At group level, Capricorn reported profit after tax of N$1.99 billion for the financial year ended 30 June 2025, representing a 14.8% increase from N$1.74 billion recorded in 2024.
Standard Chartered’s planned exit
Business Day has reported that British multinational bank Standard Chartered has revised its earlier plan to sell only its wealth and retail banking business in Botswana, opting instead to place its entire local operation on the market. The move is expected to draw interest from regional and international banks seeking growth outside their home markets.
The proposed sale now includes the corporate and investment banking division, which has traditionally been a key earnings contributor.
The shift in approach reportedly followed pressure from potential buyers, who favoured acquiring the business as a whole rather than in parts.
The transaction is expected to take up to 15 months to complete. In the region, South African lenders Absa and FirstRand have already agreed to acquire Standard Chartered’s operations in Uganda and Zambia, respectively.
Standard Chartered has exited or scaled back operations in several African markets in recent years, including Zimbabwe, Angola, Cameroon, The Gambia and Sierra Leone.
Fitch Ratings said in a 2024 report that it expected European banks, particularly French institutions, to accelerate divestments from Africa as part of broader strategic realignments.
British multinational bank HSBC exited South Africa in 2024, transferring its clients, assets and liabilities to FirstRand and Absa, as global banks struggled to compete in markets dominated by strong domestic lenders. French bank BNP Paribas wound down its corporate and investment banking operations in South Africa two years earlier, ending a 12-year presence.
Standard Chartered Bank Botswana is the country’s oldest and first commercial bank, having opened in Francistown in 1897, well before Botswana’s independence.
-Additional reporting by Business Day.
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