For Botswana, when an exporter has concluded a commercial export contract with a Botswanan importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.
The Botswanan importer will ask the Botswanan bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.
For Botswana, the exporter must choose a confirming bank that has in its network of correspondents the Botswanan bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.
A letter of credit issued in Botswana is usually confirmed by a big number of banks which are prepared to take the risks of Botswanan banks and make sure the beneficiary of the LC or exporter obtain his payment.
LIST OF BOTSWANAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS
Bank of Baroda (Botswana)
First National Bank of Botswana Limited
State Bank of India (Botswana)
Stanbic Bank Botswana
CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH BOTSWANAN BANKS
Banks which are confirm the letters of credit issued in Botswana by Botswanan banks are: (please contact us to obtain the list or to be listed as confirming bank).
BOTSWANA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A BOTSWANAN BANK
Confirmation charges and fees for letters of credit issued through Botswanan banks can be obtained on demand by emailing: firstname.lastname@example.org.
TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE