Fiscal challenges set to deepen as the cost of Gov’t debt climbs

Botswana is facing growing fiscal pressures, with worries mounting that the cost of servicing government debt could spike this year. The culprits? A weakening Pula and rising interest rates. Recent figures from the Bank of Botswana reveal some positive signs in the government’s finances during the first 11 months of the 2025/2026 financial year (April 2025 – March 2026). Government revenues hit P63.23 billion, up by P4.19 billion from the P59.02 billion recorded in the...

Botswana’s new solar project targets export markets

Shumba Energy Limited, a company listed on the Botswana Stock Exchange, has officially begun construction on a major solar power plant poised to supply electricity domestically and export energy across Southern Africa. The Tati Solar project, a 100-megawatt solar photovoltaic facility, is set on roughly 160 hectares near Francistown and aims to enter commercial operation by 2027. According to a recent market update from the Botswana Stock Exchange, Shumba Energy holds a 75 percent stake...

BSE reports profit growth to P20.6 Million

The Botswana Stock Exchange (BSE), a government-owned regulator, has announced an improved financial performance for the year 2025, recording revenues of P78.8 million and a profit after tax of P20.6 million. Among state-owned enterprises, the BSE stood out as one of the few that remained profitable last year. It declared dividends of P2.5 million and is now focused on executing a new strategy aimed at increasing its revenue tenfold by 2030. The exchange’s revenue rose...

BMI warns on mounting challenges in the banking sector

The UK-based research firm Business Monitor International (BMI) has warned that Botswana’s banking sector is facing escalating challenges that could hinder its performance this year. BMI highlighted that the sector may also struggle to support the recovery of Botswana’s economy amid a difficult operating environment. In its recent forecast, BMI indicated that while the banking industry is expected to remain broadly stable in 2026, buoyed by strong capital buffers and low levels of non-performing loans,...

Botswana faces rising risk of debt crisis within a decade

Botswana could be on the brink of a debt crisis within the next five to ten years, driven by escalating government borrowing aimed at covering persistent budget deficits, according to a recent analysis of the country’s public debt. The report, conducted by local consultancy firm Econsult, warns that Botswana is grappling with a burgeoning debt problem that threatens to escalate into a full-blown crisis if current borrowing trends continue unchecked. Econsult’s review highlights that government...