Botswana is poised to see a decline in investment from both households and businesses, driven by soaring credit costs linked to rising interest rates in the commercial banking sector.
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New data from S&P Global Ratings reveals that Botswana’s Finance Ministry is expected to spend P6.3 billion on interest payments for government debt during the 2026/2027 fiscal year. This follows an increase in borrowing aimed at covering the country’s growing budget deficit. Botswana’s budget deficit is projected to hit P25.48 billion in the 2025/2026 fiscal year, up sharply from the P11.8 billion deficit recorded in 2024/2025. The deficit is forecast to rise further to P26.35...
Inflation is poised to surpass the Bank of Botswana’s upper threshold of 6 percent by June 2026, driven by rising prices across key sectors, according to recent data and expert analysis. An examination of newly released figures by the Weekend Post reveals that inflation averaged 4.1 percent in the first quarter of 2026, up from 2.7 percent during the same period in 2025. This 1.4 percentage point increase reflects growing cost pressures in transport, food...
Botswana is set to enter the organic turmeric export market with its first shipment to Germany expected in the third quarter of 2026, following successful crop cultivation by local farmers last year. The Ministry of Agriculture confirmed last week that 160 Botswana-based farmers have been contracted by a German firm to grow organic turmeric during the 2025/2026 and 2026/2027 planting seasons for export to Germany.
New data from Botswana’s banking sector reveals a sharp rise in loan arrears among households and businesses, reflecting mounting economic pressures and financial strain that are slowing income growth and hampering debt repayment. Loan defaults climbed by P1.1 billion, from P6.9 billion in December 2025 to P8 billion in January 2026. In January, households accounted for P4.5 billion in overdue loans, while businesses reported P3.5 billion in arrears. Household loans overdue between 30 and 90...
Recent trade data reveal that the rise in export earnings combined with a reduced import bill narrowed Botswana’s trade deficit by P22.1 billion, from P34.5 billion in 2024 to P12.4 billion in 2025. This improvement is expected to bolster foreign exchange reserves and enhance government fiscal receipts. Diamonds were the primary driver behind the growth in total export earnings, with diamond exports rising by P9.9 billion from a revised P44 billion in 2024 to P53.9...
The Botswana government, through its investment arm, plans to inject A$4 million (approximately P35 million) into the Serowe Coal Bed Methane (CBM) gas mining initiative, a project poised to address the escalating industrial gas supply challenges across Southern Africa. This strategic investment is being channeled via the Mineral Development Company Botswana (MDCB) into a venture currently spearheaded by Botala Energy, a publicly traded gas exploration company listed on both the Australian and Botswana Stock Exchanges....
A recent survey by the Bank of Botswana (BoB) reveals a resurgence of optimism among Botswana-based enterprises, reversing the decline experienced in the final quarter of 2025. The findings indicate that businesses operating within Botswana anticipate a more conducive trading environment throughout 2026 compared to the challenges faced in late 2025. The quarterly Business Expectations Survey (BES) captured insights from the domestic business community on prevailing economic conditions and their outlook for the year ahead....
Botswana stands out as one of the Sub-Saharan African (SSA) economies most susceptible to a sharp rise in fuel prices, a consequence of escalating US-Iran geopolitical tensions. In a comprehensive index assessing SSA markets’ exposure to surging energy costs triggered by the US-Iran conflict, Fitch Solutions, a UK-based research firm, positioned Botswana at 11th out of 49 countries, assigning an overall vulnerability score of 62.1 out of 100. Somalia tops the list with a score...
Global credit rating agency Standard & Poor’s (S&P) last week downgraded Botswana’s sovereign credit ratings, citing subdued demand and declining prices in the diamond sector, factors that continue to weigh heavily on the country’s constrained economy and public finances. The agency lowered Botswana’s long-term foreign and local currency sovereign credit ratings from ‘BBB’ to ‘BBB-’. Similarly, the short-term foreign and local currency sovereign ratings were downgraded from ‘A-2’ to ‘A-3’, while the economic outlook remains...