The government of Botswana has announced that it is in the process of implementing a national payments switch which will serve "as a foundational payments infrastructure to facilitate clearance and settlement of all retail payments."
"The Payment Switch will offer an option to route transactions made with locally issued cards to a central point, for settlement at the Bank instead of being routed through the network of international card schemes," said Minister of Finance Peggy Serame.
The project will be undertaken in two phases, with Phase 1 involving documentation of the current payment system architecture, the development of a roadmap for future payments and analysis of market requirements, expected to be completed before the end of this financial year. The second phase which is the procurement of National Retail Payments Switch will commence in April 2024.
Digitising Tax Collection
To close leakages and maximise revenue, Botswana Unified Revenue Service (BURS) is implementing Electronic Invoicing (E-Billing) for efficient VAT collection, with the first phase of the three-year project (Pilot) scheduled for completion in December 2024.
Furthermore, BURS is implementing a solution to digitally mark and track excisable goods (track and trace), and the digital solution will be fully implemented by July 2024. In addition, Botswana Unified Revenue Services continues to optimise the efficiency of its e-services; online tax filing systems, online customs declarations, electronic payment (electronic funds transfer) as these platforms simplify tax compliance for individuals and businesses, fostering a business-friendly environment and encourage investment.