Botswana’s motshelo system, a community-based savings and lending system, is undergoing a generational shift, with young Batswana calling for technology to fix its most persistent problems.
The State of Motshelo 2025 report, published by Column Research, surveyed 140 Batswana across the country to understand who uses metshelo, how they operate, and what challenges and opportunities exist for the future. The findings show that while metshelo remain vital to household finance, there is growing frustration with their manual processes, and rising appetite for digital transformation.
The report disclosed that nearly 70 percent of respondents were between the ages of 25 and 34, dispelling the notion that metshelo are only for older or rural participants. This younger, working-age group is digitally savvy, already using mobile money, bank transfers, and messaging apps to manage contributions. For them, the pain points are clear: late payments, poor record-keeping, lack of enforcement when members default, and even occasional misuse of funds.
“Motshelo is not just transactional; it is also social,” one respondent noted, but “the manual way of using books is outdated.” Another respondent called a tech solution “innovative” and praised the idea as “anything for convenience and efficiency.”
The survey found that 53 percent of respondents gave a perfect 10/10 score for interest in a digital motshelo platform, showing significant enthusiasm for a tech upgrade. Importantly, more than four in five (82 percent) said they would be willing to pay a small monthly fee of about P5 for such a service, provided it offered tangible value, better record-keeping, and stronger security.
Respondents ranked easy savings tracking (14.6 percent), interest rate calculations (13.2 percent), and legally binding agreements (13 percent) as their most desired features. Other top requests included loan application and repayment tools, automated reminders, mobile money integration, credit scoring, and the ability to generate reports and analytics.
Despite enthusiasm, the study identified trust and security as key barriers to adoption. Users worry about data privacy, potential hacking, and misuse of personal information.
“Misuse of personal data, being hacked, and losing all funds,” one respondent said when asked about fears of going digital. Others questioned whether members would comply with agreements on a digital platform and whether scammers could exploit the system.
The report recommends building robust security protocols, including PIN- or OTP-based logins, encrypted data storage, and transparent privacy policies. Partnerships with trusted banks, mobile money providers, and cooperatives could also boost credibility.
Opportunities for Fintech and Banks
The findings suggest a significant opportunity for fintech startups, commercial banks, and microfinance institutions. The report encourages developers to design lightweight platforms that manage contributions, payouts, and member tracking without overcomplicating the experience.
Banks could integrate digital motshelo features into existing mobile banking apps or USSD menus, while cooperatives could use the platforms to streamline member management and improve trust. The researchers also note that regulators may need to set minimum standards for digital motshelo platforms, including rules for dispute resolution, consumer protection, and data privacy.
Because some participants, especially older or rural members, still lack reliable internet access, the report stresses that offline options remain crucial.
“USSD and SMS-based notifications should allow members to check balances, receive reminders, and confirm contributions without downloading an app,” it said.
The report noted that metshelo are not going away; if anything, they are becoming more relevant as younger, digitally engaged Batswana look for ways to save, lend, and support each other more effectively.
“The need is clear, the audience is ready, and the path forward depends on solving the right problems first,” it said..
If implemented successfully, digital motshelo platforms could transform how Batswana manage money day-to-day, from school fees to emergency expenses, while reducing financial stress and disputes.
“Digitising motshelo is not just about convenience; it’s about inclusion,” the report concludes. “It can give users better records, accountability, and trust without losing the social and communal spirit that makes motshelo so powerful.”
