Original Research

Concentration in Botswana's banking sector

T Kayawa, A Amusa
South African Journal of Economic and Management Sciences | Vol 6, No 4 | a1524 | DOI: https://doi.org/10.4102/sajems.v6i4.1524 | © 2003 T Kayawa, A Amusa | This work is licensed under CC Attribution 4.0
Submitted: 15 December 2003 | Published: 15 November 2003

About the author(s)

T Kayawa,
A Amusa, University of PRetoria

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This study examines the degree of competition and efficiency within the commercial banking sector of Botswana. By applying the Herfindahl index, the paper provides an empirical methodology for assessing competition and market concentration among commercial banks. The study also utilises alternative measures of bank input and output by developing simple descriptive indices to assess the level of efficiency in Botswana’s banking sector. Overall, the results indicate that the implementation since 1989, of policies to liberalise and reform financial sector activities has contributed to increased competitiveness and efficiency amongst Botswana’s commercial banks.


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