Why Batswana are easily scammed

Good morning, let’s get into it!

Many Batswana today, more than ever, are getting scammed, and the scams are getting way out of hand. This is the second epidemic after GBV in the country. But what I found out is that the rich don’t focus on having their riches and wealth in their bank accounts.

In fact Mr Mogobe of the nuggets of wisdom podcast has confessed to only keeping enough to pay his bills, the rest is circulating in his businesses. The reason keeping large sums (like P300,000+) in a standard transactional bank account is risky isn't just because of hackers; it is because of liquidity.

If money is sitting in a Cheque or Savings account linked to a card or app, it can be stolen instantly. Real wealth preservation involves moving that money into assets that have "friction"—meaning they take 48 to 72 hours to liquidate. This delay prevents panic transfers and makes it impossible for a scammer to drain your account in minutes.

Here are the safest, regulated asset classes available in Botswana that generally outperform standard bank savings accounts and are much harder for scammers to touch.

1. Unit Trusts (Money Market Funds)

This is the closest alternative to a bank account, but with better growth and safety.

• What it is: You pool your money with other investors, and a professional manager (like BIFM, Allan Gray, or Kgori Capital) invests it in safe instruments like government treasury bills and corporate bonds.

• Why it grows better: While a standard bank savings account might give you 3-5% interest, a Money Market Fund in Botswana often yields 7-9% (or higher in high-rate environments). It beats inflation better than a regular savings account.

• Why it is safe from scams: You cannot withdraw this money at an ATM. You must submit a withdrawal instruction, and the money takes 2–4 days to reflect in your bank account. Scammers cannot force you to "instant send" this money.

• Where to go: BIFM, Allan Gray, Stanlib, or Kgori Capital.

2. Government Bonds & Treasury Bills

These are considered "Risk-Free" because they are backed by the Government of Botswana.

• What it is: You are effectively lending money to the government.

  • Treasury Bills (T-Bills): Short-term (less than 1 year).

  • Bonds: Long-term (2 years to 20+ years).

• Why it grows better: The government pays you a fixed interest rate (coupon) that is usually higher than what commercial banks offer for fixed deposits.

• Why it is safe: The only way to lose this money is if the entire country goes bankrupt. It is extremely secure.

• Where to go: You buy these through "Primary Dealers," which are the main commercial banks (FNBB, ABSA, Stanbic, etc.). You ask for their Treasury Department or Wealth segment.

3. Exchange Traded Funds (ETFs) on the BSE

If you want to keep money in Pula but have it value-pegged to global assets (like Gold or US Dollars), this is the mechanism.

• What it is: These are funds listed on the Botswana Stock Exchange (BSE) that track the price of something else.

  • NewGold ETF: Tracks the price of gold. If the Pula loses value, gold often holds value.

  • NewFunds ILBI: Tracks inflation-linked bonds.

• Why it grows: It allows you to participate in the global economy without taking your money offshore. For example, if the gold price goes up globally, your investment in Botswana goes up.

• Why it is safe: You need a brokerage account (CSD account) to trade these. Scammers cannot access a CSD account via a mobile app. Selling shares takes days to settle.

• Where to go: Stockbrokers Botswana, Motswedi Securities, or Imara Capital.

4. Cattle (Thuo)

We cannot ignore the traditional context. In Botswana, cattle function very similarly to a "growth asset."

• The Pro: Cattle naturally reproduce (compound interest). A herd of 20 can increase to 30 without you needing to buy more.

• The Con: High maintenance, risk of theft (matimela/bogodu), and drought/disease. It is not "passive" income; it is a job. But financially, a well-managed herd often outperforms cash in the bank over 10 years.

Summary: The "Anti-Scam" Checklist

The reason people lose P300,000 is often that they are chasing "double your money in a week" schemes. To keep your money safe, use this checklist:

1. Is it Regulated? Check if the company is licensed by NBFIRA (Non-Bank Financial Institutions Regulatory Authority). If they aren't, it is a risk.

2. Is it Liquid? If you can access the money instantly via a card, it is vulnerable. Move your bulk savings to a Unit Trust where it takes 48 hours to withdraw.

3. Is the return realistic? Banks give ~4%. Good funds give ~8-12%. If someone promises 50%, it is a scam.