SmartSwitch Botswana is blazing a trail for financial inclusion with a financial technology (Fintech) solution that puts dignity and financial services into the hands of food voucher beneficiaries.
Since its establishment in 2006, Smart Switch has expanded its footprint to serve more than 75,000 beneficiaries in underserved communities across Botswana.
SmartSwitch Botswana, a subsidiary of Lesaka Technologies, was founded with the exclusive rights to deploy Botswana’s Universal Electronic Payment System (UEPS). The UEPS has also been embraced and approved by the central banks of countries such as Namibia, Ghana, and South Africa as an accredited national payment system.
At the heart of the offering is a secure, biometric-enabled smart card platform designed for the unbanked and underbanked. The system enables food grant recipients to safely receive, store, and spend funds at local merchant outlets while earning interest on unspent balances.
The solution was developed in response to a Ministry of Local Government tender to overhaul Botswana’s paper-based food basket system. The previous system—characterised by inefficiencies, a lack of choice, and social stigma—was failing the people it was intended to help.
The tender had two primary goals. Firstly, the Ministry of Local Government aimed to empower beneficiaries with a choice in the food they received, when they could collect it, and where they could collect it. The second aim was to provide a dignified alternative to the stigma associated with the earlier system.
“Although we applied cutting-edge technology to the challenge, we also knew we needed to create a deeply human solution to address the audience’s needs,” says France Mabiletsa, Managing Director of SmartSwitch Botswana. “We had to provide beneficiaries with a choice and restore their dignity.”
Today, those goals have been exceeded. Beneficiaries no longer need to queue in the sun with wheelbarrows to collect pre-packaged goods.
Beneficiaries receive a monthly allowance on a SmartSwitch card, which they can use at over 1,200 local shops, ranging from general dealers to corner stores. Each transaction is authenticated through biometric verification, ensuring security and privacy. The card resembles a bank-issued debit card, so it isn’t immediately apparent that they are food allowance beneficiaries.
Within the first three years following implementation, more than 50,000 people, many of whom had never previously engaged with a financial institution, were integrated into Botswana’s economic ecosystem. Today, over 75,000 beneficiaries have access to these innovative banking tools, which include secure, offline-capable transactions via biometric-enabled POS devices.
The solution is equally transformative for merchants. Payments are settled within 48 hours, improving liquidity. Competition among stores has improved service quality, benefiting end users. “The system has helped our business grow. We serve more customers, and we get paid quickly and securely,” said Kennete Mmusinyane of Obed Supermarket in Gumare in the Okavango District.
With a track record of reliable delivery and innovation, SmartSwitch is gearing up for the next phase of its development. As the government prepares to issue a new tender, SmartSwitch plans to introduce enhanced services and upgraded devices to support beneficiaries and retailers further.
“We’re not standing still. We’re reinvesting in the system to do more for more people,” says Mabiletsa. “We aim to continue to be a trusted partner to the government, a reliable ally to merchants, and a gateway to dignity, choice, and empowerment for thousands of people in Botswana.” SmartSwitch is a member of Lesaka Technologies.
