Financial Institutions as a Facilitator of Economic Growth

Abstract

This paper assesses the impact of financial institutions on the economic development of Botswana. As it is not sensible to depend on a single mineral (diamonds) for long-term economic emphasis towards the development of financial Institutions. Its is apparent that the influence of Financial institutions as more on household than development activities. Hence the Government of Botswana entered into banking activities. Government's realization of the need to separate its banking functions prompted the establishment of the Botswana Stock Exchange to float the capital market and the Banking Act In spite of all these action, the much needed assistance is not forthcoming from financial institutions. Hence the development of a suitable legal framework to channel deposits of the development purpose is suggested.


Key Words: Africa Botswana, Banking, Finance, Capital market and Economic Development


African Journal of Finance and Management Vol.10(1) 2001: 8-22