Financial liberalization enables market forces to play a greater role in mobilizing resources, allocating credit, setting fi nancial asset prices and improving
fi nancial intermediation. Many studies have claimed that these changes enhance savings, and improve effi ciency of investment, which ultimately ameliorate economic growth. This paper attempts to analyse the Botswana experience, where despite having an open economy for many decades, fi nancial liberalization was a major policy in the recent structural change. Our analysis show that, in line with the objectives of fi nancial liberalization program in
Botswana, both the level of savings and effi ciency of investment, have shown some sign of improvement.