Volume 51 Issue 12 - December 2013 : Others

Pondering over countless debts each day can trigger depression and a life devoid of good health. And when a mind is continually preocopied with worry and stress, it may harbour perfidious thoughts. 

It is no wonder that in severe situations, those who are smothered in debt and harbour such thoughts  hang themselves - to selfishly end their troubles,  leaving those they owe fuming in anger.  “That`s how serious it can become when we fail to manage our finances. Many lives were lost because of failure to manage our finances, ” says outspoken Money Matters chief executive officer and also Botswana Pension Society executive secretary, Ednah Dambe.  

Dambe spoke to Kutlwano during a recent visit to her offices to get her rich financial expertise. She underscores that for people to gain financial freedom it is important for them  to understand themselves, know what they want out of life, and set financial goals to avoid debt pitfalls. “Keep your eye off your neighbours house!” That in short means, avoid peer pressure and live within your means.

With her sharp financial eye, Dambe has observed that people, especially the well paid, have a tendency of being careless with money. Such individuals, she says, usually lead extravagant lives but do not own any property or assets.  They heavily rely on credit.

 “Our researches show that, lowest earners net worth is much higher than those who earn higher salaries, because your attitude towards your income will dictate your financial success. A person who perceives their income as nothing or inadequate will abuse it and not try to build on it.”

Dambe says someone who views and treats  his or her income as a stepping stone to achieving their personal goals will go very far.  Interestingly, everyone who has had straight talk with Dambe or attended any of her workshops will instantly recall her statement; “Your salary is your opportunity for you to gain your financial freedom”. No matter how small it is, it can enble you to attain great things if you have clearly defined financial goals.

She says the credit situation is fuelled by people`s lack of understanding of money, and financial institutions take advatage of that, “Batho ba lwela madi a rona, dibanka, bomachonisa jalo, jalo, jaanong rona batho o fithela re tsietsega”.

She is not impressed that commercial banks are not doing enough to impart financial literacy. “Banks are not doing enough, we are at a stage where we are in trouble, we are in debt…in the past the law could not permit credit beyond 30 per cent of your income but these days, when I am sitting at home, my phone beeps Top-up loan, the banks are not doing enough, and the government needs to stand up,” she says.

In some countries, they have debts clinics “but we have long passed that stage, we are at a stage where the government must intervene and, introduce the credit act to protect the borrower. Government must introduce a focused credit act, that will force institutions with money or lenders to assess the borrower`s ability to repay the loan before they get the loan, we do not have a credit act. Someone can get  four personal loans and no one would know because lenders or banks do not have linked information, and they won`t, because once I [ that is another bank] see the network of your clients, ke a a ba batla!”

She says, the problem is that, “there is no contract or linking paper trail between loan sharks (Bomachonisa) and other  financial institutions, such that the credit situation is in conflict with government`s initiative of poverty eradication, it`s like we are walking down a flight of stairs,” She is frustrated that  even the Non Bank Financial Institutions Regulatory Authority (NBFIRA) has a section on micro lenders but the NBFIRA Act is structured such that the organisation is powerless. 

Dambe suggested that a completely  neutral independent body be set up to help solve the debt situation in the country. She has no kind words for people who borrow until they are swimming in debt.  “Even clients lie with the assistance of a lending officer, o go raya a re kwala jaana, e beye jaana kgang e le gore o tle o bone madi.”

But people can beat debt if they set themselves financial goals. “If you do not set financial goals you`ll be singing the same song, ke a aga-ke a aga everyday”.   When in deep financial crisis she advises, “don`t bother yourself looking for a magician or traditional doctors gore ba ntsifatse madi, ba bangwe ba re ba dira miracle money, miracle money le Eurex Trade ga di farologane gope, madi a a fufulelwa, a a berekelwa,” she says.

She says before the invention of money, Botswana was an agrarian society and there was stability in the home. Now that we are a cash society  families are breaking up. “In marriages, we must understand money, again, it is every parent`s duty to educate their  child about money. It starts from  there.”  “And we cannot get anywhere without doing the budget, setting up financial goals, debt management, risk insurance..., “ she says. ENDS

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