Inflation in Botswana is expected to remain high over the coming six months before easing significantly by the second quarter of 2027, according to updated forecasts from the Bank of Botswana. The central bank’s August 2026 Monetary Policy report projects that inflation will stay above the upper limit of its 3 to 6 percent target range through the final quarter of 2026 and the first quarter of 2027. It is then anticipated to return to...

Preliminary figures released last week by the Bank of Botswana reveal that the Finance Ministry reported a budget deficit of P16.34 billion for the 2025/2026 fiscal year. This marks a significant improvement from the previously projected deficit of P25.48 billion.

Botswana’s trade balance took a sharp downturn in the first half of 2026, as newly released data shows the country’s trade deficit ballooned to P15.54 billion. This marks a staggering 63.6 percent increase – up by P9.9 billion – compared to a P5.66 billion deficit recorded during the same period last year.

Businesses in Botswana are expressing cautious optimism about the trading environment through June 2027, buoyed by government initiatives aimed at economic recovery and business transformation, according to a recent survey from the Bank of Botswana. While the operating landscape remains challenging, companies anticipate more favorable conditions from the fourth quarter of 2026 into the first half of 2027. The quarterly Business Expectations Survey (BES) gathered insights from local businesses about current economic realities and future...

Botswana’s commercial banks recorded a P2 billion decline in household lending in May 2026, reflecting the ongoing pressure of elevated borrowing costs. According to the latest Botswana Economic and Financial Statistics report from Bank Botswana, total annual bank lending fell by 0.2 percent in May, a sharp contrast to the 2.5 percent growth seen in January. The household sector was the primary driver of this downturn. Lending to households dropped 3.6 percent to P55 billion...

Foreign direct investment (FDI) in Botswana’s mining sector surged to P47.8 billion in 2024, marking a P15 billion increase from the previous year, according to an update from the Bank of Botswana. The mining sector dominated FDI inflows, accounting for 48.8 percent of the country’s total investment, up from 37.5 percent in 2023, highlighting its growing appeal to investors. The wholesale and retail trade sector ranked as the second-largest recipient, drawing P25.8 billion in FDI....

Botswana is facing challenges in sustaining its export recovery, with new data revealing a P5.4 billion decline in export earnings during the first five months of 2026. According to figures released last week by Statistics Botswana, the government’s official statistics agency, export revenues totaled P25.6 billion between January and May 2026. This marks a 17.3 percent decrease, P5.4 billion less, compared to the P31 billion recorded during the same period in 2025. Diamonds accounted for...

Botswana’s investment in fixed assets, including infrastructure, transport equipment, and plant machinery, fell sharply in the first quarter of 2026, raising concerns about the pace of the country’s economic rebound. According to the latest figures from Statistics Botswana, fixed asset investment dropped by P1.2 billion, from P11.6 billion in the first quarter of 2025 to P10.4 billion in the same period this year. A closer look at the data reveals that spending on plant machinery...

Consumer spending in Botswana is expected to remain restrained throughout the remainder of 2026, following a decline exceeding P600 million in the first quarter.