ABSTRACT
The 2008 crisis made adverse impact on individuals, households and the
economy at large around the world mostly to countries in Sub-Sahara Africa like
Botswana. Dealing with the repercussions of the crisis and the low levels of
financial literacy which were identified to have contributed to poor financial
decision making then, countries around the world adopted multi sectoral national
strategies for recovery. However Botswana has not yet embraced the idea
thereby posing issues of lack of coordination and control for consumer
protection. There is also lack of measurement and evaluation of these initiatives
which is an impediment to understanding the depth of the problem, restricting
stakholders at strategic policy level to make informed decisions. These issues
necessitated for the study to evaluate the financial literacy initiatives in Botswana
with the aim to answer the research question: What is the framework of
enhancing financial literacy initiatives in Botswana?
The study followed Mixed Method Research (MRR) based on the philosophical
stance of pragmatism; the two are described as attractive partners exalting the
research question to be the most important determinant of epistemology,
ontology and axiology. From the types of MMR, Exploratory Sequential Design
(ESD) was appropriate to deal with the context of Botswana where the
phenomenon was less known; minimal studies, no measures or instruments
hence the variables were unknown. Therefore the first phase of qualitative
research design was utilised to explore the phenomenon and determine the
areas of interest (variables) and develop an instrument for the next step. An
interview quide was used to collect data during consultative meetings and semistructured
interviews platforms. Its reliability was achieved by pilot-testing but
validated by expert analysis. A purposive or non-probability sampling specifically
critical case sampling became relevant as the financial literacy initiatives were
heterogeneously implemented such that 21 cases were purposively grouped in
sectors representing the population identified. The study accommodated
Qualitative Data Analysis (QDA) approach with Braun and Clarke (2006:5)'s
thematic analysis process which permits qualitative analysis of "talk" and
"narrative" which in this study was provided by the interviews.

The second phase involved a quantitative research using a questionnaire for
data collection from the recipients to establish the impact of the financial
education they received . The study utilised Exploratory Factor Analysis (EFA) for
instrument validity and reliability having conducted tests: the Cronbach's alpha
reliability coefficient for internal consistency, Bartlett's test of Sphericity and
Kaiser-Meyer-Olkin test (KMO) for measurement of sampling adequacy. The
sampling of 400 was drawn from the population of Botswana (2.292 million) with
the technique that for large populations of (N=5000), 400 is saturation point to
produce valid results. The study adopted Bannon (2013: 19)'s seven steps of
quantitative data analysis which permitted different techniques employed for
different questions: A Statistical Package for the Social Sciences (SPSS)
Version 23 (2015) was used for descriptive statistics dealing mainly with
univariate and bivariate analysis. For the multivariate analysis, Confirmatory
factor analysis (CFA) was used for the self-assessment questions to confirm the
variables observed from the qualitative report while Principal Component
Analysis (PCA) was utilised for factor extraction of 9 factors for self -
assessment test and also for data reduction of variables. In dealing with the
reduced variables cluster analysis was then applied for both self-assessment
and the performance test.
The results of the thematic analysis revealed 6 themes with the main problems
identified as: low levels of financial literacy and less consumer protection, lack of
financial counselling, use of inappropriate methods, lack of funding for financial
education, lack of measurement and evaluation, lack of a defined curriculum,
and lack of government intervention for nation-wide coordination. The
quantitative data analysis revealed that there are still low levels of financial
literacy especially among youth. The main findings are: Financial inclusion but
lack of understanding concepts, lack of understanding the difference between
investments and savings, lack of obtaining the correct information and lack of
confidence in financial decision making. As a synthesis of the two results a
framework offering solutions for enhancing financial literacy initiatives was
developed and Botswana is urged to implement the following recommendations:
1. National coordination - a national strategy is imperative to deal with issues of
regulation , control and necessary enforcement for consumer protection . 2. A
multi - sectoral approach will be most suitable for all stakeholder involvement to
combat financial illiteracy. 3. Inclusive financial education - with a defined
curriculum and interactive methods financial literacy initiatives must reach out to
all, in particular young people 4. The priority areas suggested are: Investment,
Budgeting, Portfolio Management, Income and debt Management. 5. Lastly,
Measurement & Evaluation is proposed to scrutinise all initiatives and
programmes and the government is recommended to encourage research and
development of measurement tools. This will offer evidence and impact analysis
results for better policy making decisions and for continuous development in the
field of financial literacy in Botswana.
KEY CONCEPTS
Financial Literacy
Financial literacy is the ability to use knowledge and skills to manage financial
resources effectively for a lifetime of financial well-being. It is knowledge of
financial concepts, skills and attitudes to translate this knowledge into behaviors
that result in good financial outcomes
Financial Education
Financial education is the process by which financial consumers/ investors
improve their understanding of financial products and concepts and, through
information, instruction and/or objective advice, develop the skills and confidence
to become more aware of financial risks and opportunities, to make informed
choices, to know where to go for help, and to take other effective actions to
improve their financial well-being.
Financial Capability
Financial capability is possessing knowledge, skills and confidence to be aware
of financial opportunities, to know where to go for help, to make informed
choices, and to take effective action to improve personal financial well-being . An
enabling environment is vital for financial capability building would promote the
acquisition of those skills.

Financial Inclusion
Financial inclusion refers to the process of promoting affordable, timely and
adequate access to a wide range of regulated financial products and services
and broadening their use by all segments of society through the implementation
of tailored existing and innovative approaches including financial awareness and
education with a view to promote financial well-being as well as economic and
social inclusion.

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