Sister Firms




The Directors of Babereki Investments (Pty) Ltd collectively and individually accept full responsibility for the accuracy of the information contained in this document and further confirm that they have made all reasonable enquiries and declare that to the best of their knowledge and belief, there are no facts, the omission of which would make any statement in this Document false or misleading. The Directors also confirm that this Document includes all such information within their knowledge that investors and their professional advisors would require and reasonably expect to find for the purposes of making informed assessment of the assets and liabilities, financial position, profits and losses and prospects Babereki Micro Finance.



The Board adheres to the highest level of corporate governance. Furthermore, the Board insists on integrity and high ethical and moral standards for its directors. Board training is conducted from time to time to keep members up-to-date in terms of the principles of good corporate governance embodied in the King 2 and King 3 Reports. The Companies are subject to an annual audit.



The company seeks to grow both organically and through acquisitions. It will leverage of its strong captive market, as represented by its large membership, and its strong brand built through successful employee welfare programmes. In addition, the Board seeks to expand into other financial services sectors in the medium term


Business Operations Micro loans to members; airtime and sales business as well as a broker for Insurance business
Registration Number CO 2005/3560
Registered Address PLot 54374,block c , grand union building CBD, Gaborone
Postal Address P O Box 1708 AAD, Poso House, Gaborone
Telephone/Fax Numbers +267 392 2526/318 1646
Regulatory Licences by NBFIRA Micro Lending Certificate No:ML/2/93/LA
  Insurance Broker Certificate No:2/9/173
Directors Mr Andrew D Motsamai (Chairman)
  Ms Masego Mogwera
  Mr Moitshepi Victor Leoketsa
  Mr Odirile Itumeleng
  Mrs Tlhabologo Galekhutle
Board Secretariat Mrs Edith T Motshegare (General Manager)
  Mrs Sharla Egner (Principal Officer)
Company Secretary BDO Spencer  Steward (Pty) Ltd
Auditors Ernst & Young
Bankers BancABC Botswana Ltd
  Barclays Bank of Botswana (ino BOPEU)
  First National Bank Botswana Ltd
  Standard Chartered Bank Botswana Ltd
  Stanbic Bank of Botswana Ltd



Babereki Investments (Pty) Ltd was established as a wholly owned subsidiary of Botswana Public Employees Union (BOPEU). The core activities of BOPEU are, amongst others, to strengthen democratic principles in Botswana labour movements and all institutions; to promote full employment and equitable distribution of wealth in Botswana and to promote justice, equality and efficiency in the public service.

Babereki Investments (Pty) Ltd was incorporated in the Republic of Botswana in 2005 under registration number Co 2005/3560 with the aim of providing affordable financial services to BOPEU members in order to substantially improve their welfare.

In 2005, the BOPEU Central Executive Committee took a strategic decision to separate the advocacy role of the Union from the business role and, in this regard, Babereki Investments was incorporated. In 2007 the businesses owned by BOPEU were transferred to Babereki. The core business of Babereki is currently financial services.

The vision of Babereki is to become a very successful pan-African financial services Group by making key strategic investments in micro finance, insurance, asset management and ultimately in banking. This will be achieved through a clearly defined strategy of building local capacity in target companies by involving strong and credible partnerships with local investors in the communities in which it operates.



5.1 Introduction

Babereki Investments was established to spearhead the growth of local and regional business interests of BOPEU. The micro finance business was established to assist members by providing access to loans in a controlled manner (matching loans with repayment ability), so as to avoid over indebtedness of members whilst generating sufficient cash-flows in order to build a sustainable fund.

The company has grown rapidly and as at 30th September 2014 it had a loan book of P25, 299,788 and generated positive cash-flows. It has successfully created a strong brand amongst its 27,352 strong membership. The intention is to build a significant micro finance business in Botswana that is owned and managed by citizens by lending at affordable rates to members. This will be achieved by increasing membership thereby growing the pool of clients. Babereki will also use its linkages with other private sector Unions and Parastatals Unions to use employee deduction codes to extend this service to the large and un-serviced private sector in Botswana.


5.2 The Vision

Babereki’s vision is to be the most successful and innovative Union business enterprise in Botswana.


5.3 The Mission

Babereki’s mission is to optimise revenue for the Union through profitable commercial activities and competitive, affordable products and services to BOPEU members.


5.4 History of Babereki Investments

BOPEU established an in-house Loan Scheme in 2000 with the view to provide affordable loans to its members, in line with its strategic objective of improving the welfare of its members. The initial capitalisation of the loan book was P326 420 – all from internally generated funds. As demand for loans grew, the BOPEU Board approved an additional loan of P1 203 953 to the Loan Scheme. The loan was repaid in 2007 and in the same year, a new loan of P5million was extended to the Loan Scheme – this also has since been fully repaid.

Currently, the maximum loan amount is P10, 000.00 and the demand has since increased significantly - the scheme is not only profitable but it is also liquid and solvent.

The scheme was initially managed by the current General Manager with one Assistant. Since then, the scheme has successfully grown becoming a very successful Loan Scheme and has been transitioned from a Scheme operated by BOPEU, to a wholly owned subsidiary of BOPEU – Babereki Investments.

In the early days, the company had very rudimentary information management systems and few employees. These systems served the company well in the early days but as the Loan Scheme grew they became inefficient and costly. Importantly, this posed a major threat to the Scheme and a decision has been taken to upgrade to more modern decision making systems – see No.14 under Information Technology.

Babereki is now in a strong position to grow organically by first increasing its reach to current members with a medium term objective of extending loans to all Government employees and gradually to become the micro lender of choice to both the public and private sector.


5.5 Corporate Structure

Babereki is wholly owned by BOPEU. Babereki’s core business is micro finance, selling of promotional items and air time and earning of commission through broking relationships with established financial/insurance services companies.

BOPEU operates as a Union funded by its members through subscriptions and monthly management fee from Babereki.

5.5.1 Current Structure



5.5.2 Board of Directors

The Board is the supreme governing body of Babereki and is critical in its endeavour     to achieve the company’s vision. The Board develops and reviews corporate strategy, major plans of action, risk policy, annual budgets and business plans, monitors corporate performance and oversees major capital expenditure and expansion, acquisitions and disposals and is responsible for the overall strategic direction of the business. The appointment of board members is governed by the Botswana Companies Act and their appointment has been confirmed by the – Non-Bank Financial Institutions Regulatory Authority (NBFIRA).

The Board members of Babereki Investments (Pty) Ltd are:

Mr Andrew Motsamai (Executive Chairman):

Andrew is an experienced business leader and brings valuable strategic insight to the board of Babereki. He is a founding board member of Babereki. In addition to his responsibility as Chairperson of Babereki, he also serves on the Board of the Botswana Public Officers Pension Fund, the largest pension fund in Africa north of the Limpopo River. He also served on the Board of the Botswana National Productivity Centre and the Management Committee of the Botswana Public Officers Medical Aid Scheme. Andrew holds a BSc in Applied Science (Laboratory Medicine) from the Royal Melbourne Institute of Technology.

Mr Victor Leoketsa (Executive Director - Finance):

Victor is the current Finance Manager of BOPEU and effectively serves as the Finance Director of Babereki. He has overall responsibility for financial management, planning, forecasting and budgeting and information management. He brings significant leadership skills in finance and has previously worked for Local Enterprise Authority, Lobatse Tile and Botswana Medical Aid Society. Victor is a Certified Accountant.

Mrs Tlhabologo Galekhutle (Executive Director – Treasury

Tlhabologo is an Executive Director responsible for treasury. She is also BOPEU Treasury General.  She brings to the board valuable experience in treasury management and project appraisal. She has also managed very large teams in her previous role in the Local Authorities. She holds a Diploma in Accounts & Business Studies from the University of Botswana. She also holds AAT Level 4 Certificate from IDM Botswana.

Ms Masego Mogwera (Executive Director):

Masego is an Executive Director responsible for Human Resource.  She is the current BOPEU Vice President as well as being BOFEPUSU President.   She brings to the board valuable experience in human resource management and project appraisal. In 2012, she was appointed a member of the International Credentials Committee at the Public Service International (PSI), the position she still holds.

Masego holds a Higher Diploma in Forestry and Range Ecology from Botswana College of Agriculture.  She is currently studying for a Bachelor Degree in Human Resource Management through BOCODOL.

Mr Odirile Itumeleng (Non-Executive Director):

Odirile is an experienced lawyer with many years experience in private practice. His area of specialisation is civil litigation. He assists the board in all legal matters. He holds a Bachelor of laws (LLB) from the University of Botswana and he has recently completed a Master of Law (LLM) from the University of Stellenbosch. 


5.6 Secretarial function

  • Handled by  Edith Tiny Motshegare – General Manager
  • Together with Sharla Egner – Principal Officer – Brokerage business


5.7 Executive Management

The strategic plan of the Company is managed and coordinated by the Executive Committee. The Executive Committee meets on a weekly basis to review plans and actions, assess risks and consider corrective action and set key deliverables for the coming week. EXCO meetings are held monthly. These are more strategic and forward looking meetings to consider future plans and new revenue streams. The committee also reviews historical performance at these meetings.


Members of the Executive Committee are:

Edith Tiny Motshegare (General Manager):

Edith is an experienced banker having spent 25 years with Barclays Bank Botswana Limited. She underwent intensive training both locally and abroad in banking and financial management disciplines. Before joining BOPEU to establish the Loan Scheme, she held the following senior positions at Barclays: Director – Outlets Services from 1999 to 2000; Operations Director from 1997 to 1999; Sales and marketing Director from 1995 to 1997 and Retail Manager from 1993 to 1995. She has successfully transitioned the BOPEU Loan Scheme from a small “cottage” welfare scheme to a proper commercial loan book managed under an incorporated entity, Babereki Investments. In addition to her responsibilities as General Manager, she also serves as Secretary to the Board.

Recently, Mrs Motshegare was appointed as Director to Babereki Insurance Brokers (Pty) Limited. She has also been appointed as Director to a joint venture company partnering with Hollard Botswana – on insurance broking business.

Andrew Motsamai and Victor Leoketsa are the two additional members of the Babereki Executive Committee (EXCO).



6.1 Current Functional Structure – Business

Human Capital capacity has grown in line with the requirements of the business and has also been enhanced with new appointments all being in line with the strategy of employing people with a minimum qualification of a degree.


6.2 Introduction

See the recommended 0perational diagram and Human Resources Organogram below. The Directors are confident that the proposed staff capacity will be sufficient to provide the desired service levels in line with the marketing, risk and finance plan.

Since the business is already established and is not a start-up, the roles depicted below have been filled and any vacancy will be a casual vacancy, and a full budget has been provided in the business plan. As a matter of policy, Babereki seeks to utilise skills from the Botswana market in order to build a sustainable business in line with its vision and values. Furthermore, the outsourcing of marketing and internal audit will create greater efficiency.


The key functions of the organization are as follows:

  1. a. General Manager

The General Manager heads the business and is responsible for strategic planning, administration, client relations and secretarial functions. The strategic planning is managed and coordinated by an Executive Committee headed by the General Manager. The EXCO comprises the Treasurer, the BOPEU Finance Manager and the Babereki Chairman of the Board.

In order to maintain a flat structure, BOPEU has a service level agreement with Babereki which provides financial management, risk management and compliance services to Babereki on a continuous basis. Victor Leoketsa is the EXCO member responsible for this role.

  1. b. Operations, Risk and Compliance Manager

The Operations Department is responsible for providing all administrative and procedural support functions for Babereki and also ensures that all management information systems function effectively. As Executive Director, Victor has oversight of this process (through a service level agreement between BOPEU and Babereki). Edith Motshegare, the General Manager, provides daily management.

The key roles of the operations department are as follows:

  • Preparation of financial and management accounts
  • Preparation of annual financial statements
  • Payroll and staff management contracts
  • Stationery and record keeping
  • Risk and compliance

c. Risk and Compliance

In keeping with good governance and best practice, the Board is considering a new role, Risk and Compliance that will be segregated from finance and operations. This role will ensure that financial, credit; legal and internal audit and compliance risk is mitigated.

With increased regulatory requirements, the Board prefers to remain ahead of the curve in risk management. This is not an immediate appointment but will be considered as further funding is sought and the business and regulatory environment becomes more complex.

The Risk and Compliance function is currently subsumed under the Manager Loans. This role is responsible for credit risk and interest rate risk. Both the Treasurer (responsible for liquidity risk) and the Finance Director (responsible for operations, risk and compliance) have direct responsibility over this function. As Executive Directors, they take ultimate accountability and provide on-going support, through the service level agreements in force between BOPEU and Babereki.


6.3 Remuneration and incentives

The Remuneration Committee will approve all remuneration and employment contracts. This policy is designed so as to attract good quality staff commensurate with the business and industry needs in terms of specialisation.


6.4 Organogram - Recommended



6.5 Staff Retention Policy

The financial services company has put in place a staff retention policy. Competitive salaries and benefits are paid to staff. This is aimed at ensuring that the business will not suffer skills shortage.

An essential element of Babereki is training and development of its staff. To that end, the company continues to engage the services of reputable firms to ensure that the highest standards are applied to its labor force and continuous professional development is maintained throughout.



7.1 Introduction

The market strategy is guided by the vision of the Company of contributing meaningfully to citizen empowerment, capacity building, development of capital markets and being a socially responsible corporate entity. The company will focus on building a very strong brand within the next five years. This will be achieved by remaining relevant and finding solutions to the gaps identified by the Board, which are consistent with the gaps as identified by NDP 9.

The objectives of the market strategy are:

  • To increase market share to 50% of total public service employees within five years;
  • To build a reputable brand as measured by independent surveys;
  • To maintain 100% client retention through quality and efficient service
  • To have a clear, simple and effective pricing structure and to have a fresh approach to marketing


7.2 Growing market share

The Company leverages its large membership of 28 000 built on the back of its loyal BOPEU membership, low interest rates, affiliation with other Unions and its pricing and product design to aggressively grow its market share.

BOPEU members comprises of Government public workers; Parastals employees (BURS; CAAB; LEA; STATISTICS; BEC; BOBS; WUC) and Councils and Land Boards. Potential for growth is around 100,000.

A key value proposition to members and clients will be the unique approach to human capital development – profits generated by Babereki Micro Finance and other products will ultimately be for the direct benefit of members and will continue to secure their future well into the next generation.

7.3 Branding

Babereki positions itself as a trusted and caring financial partner to all its clients. This is achieved by a marketing strategy that closely aligns Babereki to Botswana as a major differentiating factor. This association will be built through substantive citizen empowerment, economic capacity building through development of capital markets and innovative product design.

The Company will be associated with efficient delivery of services, which will be achieved through decision making processes and procedures that are designed in Botswana for Batswana and implemented and delivered by Batswana.

7.4 Client retention

The Company focuses equally on client retention as it will on building new clients. Independent surveys are being conducted regularly to assess service levels and rewards and incentives are being based on both the ability to build new clients as well as the ability to retain existing clients.

7.5 Pricing

The approach to product pricing will be to ensure that interest rates charged as well as all other rates and prices are fair and transparent. The rates which we charge will continue to be lower than prevailing interest rates and could the company will strive to reduce them further. However, it must be remembered that retained earnings are ultimately for the members (who are ultimately shareholders) and this must be factored in to the overall value created through pricing and indirect means.

7.6 Products

The Company is well equipped to design new products and services since it is in close contact with it clients (members) and will have virtual feedback on their immediate and long term needs. The Company is already an existing business and continues to innovate and attract new clients.


8.0 Micro Loans Operations 

8.1 Capability

Good quality lending, characterized by sustainability and low default rate is the over- riding objective, therefore, a credit review is conducted before the loan is granted.

8.2 Monthly payments

Monthly payments should not exceed 40% of the net-pay – minimum P1200.00 and for industrial class P600.00.  This takes into account other stop-order payments as shown in the member’s bank statement provided.

8.4 Loans Credit Provision Cover

Should any calamity occur, either through injury or sickness, resulting in permanent
Disability of borrower, the outstanding debt is settled in full by Metropolitan Life.
Loan processing done at Babereki Main Office at African Mall and loan amount
credited to members accounts. 

The micro finance products to be marketed include the following:-

  • Personal Loans
  • Home improvement loans
  • School fees loans
  • Graduate studies loans


8.5 The Loan Documentation

Comprises of the following copies:-

  • Member’s latest bank statement
  • Member’s latest salary payslip
  • Member’s Omang Identity Document
  • Member’s Marriage Certificate

8.6 Collection Policy

It is a requirement for repayments to be centrally deducted through employers’ Payroll system – i.e. from source.  A system has been designed which consolidates deductions into one, (by Omang Number) and sent to employer on the 20th of every month for processing as follows:-

Government – two deduction codes have been allocated to BOPEU – one used for Subscriptions and the other for other payments to be deducted from members Salaries.  Monthly electronic payment is then made by Bank of Botswana crediting Babereki account as arranged.

BOPEU also have recognition agreement with BURS: BEC; CAAB; LEA; BOBS; Statistics (Parastals) and Local Government – monthly deductions are also deducted from source.

8.7 Dispute Resolution Policy

Babereki Investments is committed to continually improving the service we provide to our customers. The aim is to have our customers choose Babereki Investments again and again because we consistently deliver the service in every aspect of the micro lending services, from running the loan scheme to ensuring they receive prompt and professional responses to correspondence. We aim to always put our customers first and we understand that it is always the little things that matter most in delivering customer service excellence.

In spite of our efforts, we realise that from time to time, things do go wrong. When this happens, we investigate matters fully and give customers an explanation for the failure, regardless of who was responsible.

8.8 Complaint/Dispute

This is defined as any expression of dissatisfaction by a customer or potential Customer about service delivery by the company or industry policy. We appreciatethat customer feedback is vital in helping us deliver continuous improvement across our business.

The customer complaints handling procedure/dispute policy is designed to make Sure the customer dispute is dealt with efficiently, fairly and effectively. 

Besides micro finance, the other products and services currently being offered to BOPEU members by Babereki Investments are:-



Licence to operate as Babereki Insurance Brokers (Pty) Ltd Certificate No: NBFIRA 2/9/173    dated 18th September 2014 issued by NBFIRA.

 Mrs Sharla B Egner, a seasoned Insurance Expert, has been appointed as the Principal    Officer in order to drive the insurance business further as per the Business Strategic Plan. She holds the degree of Bachelor of Commerce from the University of Botswana and is an Associate of the South African Institute of Insurers.

Currently, the company offers the following insurance products:-

9.1 Group Funeral Scheme

Incorporated in 2005, and operating through Babereki Insurance Agency, the core business of the agency is to provide a funeral cover to BOPEU members.  Currently, the underwriter being Metropolitan Life. 

9.1.1 Subscription fee for membership is P34.90, which includes a compulsory funeral cover for member and immediate family (spouse and children). Benefit for member or spouse is P25, 000.00. Benefits for children vary according to age, the maximum age being 21 years.

9.1.2 There is also an optional cover for parents and extended relatives who are directly related to member and should be under the age of 85. Minimum benefit cover is P3000.00 and maximum P6000.00.

9.1.3 Other conditions are outlined in the application form.

9.1.4 The Babereki Brokerage receives commission from the underwriter, Metropolitan and the members also enjoy the discounts offered by Lyns Funeral parlour countrywide.

9.1.5 The company is also entitled to  annual profits accrued under the scheme.


10.0 Insurance Brokerage Services planned. – TO PROVIDE A LOGO

Immediate products targeted for will be:-

  • Short-term Insurance – motor vehicles and house owners
  • Credit Life
  • Life Assurance Products – Group Life Assurance.



This is a 24 months renewable contract by Botswana’s mobile operators to provide mobile products and services to BOPEU members subject to the terms and conditions outlined. These are Orange and B-Mobile.
The monthly fixed airtime amount entered into by BOPEU members is deducted from source under the BOPEU deduction codes.

The entire administration and general accounts management is vested on Babereki Investments. In return, discounts and bonuses for Babereki Investments and BOPEU members are offered as follows:-

  • To Babereki – monthly commission as administrations fees.
  • FREE handset vouchers for all BOPEU members on offer
  • FREE simcards for all BOPEU members on offer
  • Bonus airtime (to call any network) every month
  • Monthly bonus airtime on all top ups made.



Babereki administers monthly payments of loans granted to BOPEU members by BancABC – using the company deductions codes from Government and Parastatals.

In return, as per contract, a monthly commission of the net interest margin is paid to Babereki as administration fees.



Babereki currently sells branded products to members as a way of building awareness and getting the brand
to all stakeholders. 



The last audit was as at the end of September 2014 and the audited Financials have been provided separately.



The Company currently uses an in-house developed system that is soon to be replaced by a sophisticated Loans Management System. The Implementation has just recently commenced.

15.1 Proposed Solution

The Directors are cognisant of the fact that more sophisticated information management solutions are required to ensure that the company is effective in the delivery of its service in line with its strategy. To this end, the Board has approved the procurement of  an integrated decision making system that will integrate strategy (long term goals), business planning, operations planning (budgets and control) and historic report (what happened). The company engaged is Xpertek RMP (Pty) Ltd – a South African based company recommended by our Auditors. This will allow for effective management of the business, by not only focusing on what happened and measuring this accurately, but also allowing prompt and accurate decision making. The project is envisaged to take 8 months.

A Botswana IT company, Kgori Business Solutions has also been engaged and their responsibility is “project management” on behalf of Babereki Investments to ensure delivery of the project according to the agreed plan and milestones.

The whole project cost is estimated at P5million and the budget has been approved by Babereki Board.