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...

Botswana’s economy is facing potential disruption amid escalating tensions between Iran and the United Arab Emirates (UAE). The recent conflict has triggered flight suspensions and delayed diamond sales tenders scheduled for early March 2026 in Dubai, a critical hub for Botswana’s diamond exports. The territorial dispute near the Strait of Hormuz intensified in late February 2026, culminating in airstrikes against the UAE. Given that the UAE ranks among Botswana’s top export markets, this conflict is...

The Botswana Stock Exchange (BSE), a government-owned market regulator, is projecting strong performance for 2026, buoyed by initiatives aimed at expanding investor participation in domestic capital markets. Building on a solid foundation laid in 2025 and robust early-year results, the BSE anticipates maintaining positive momentum. Over the course of 2025, from January 1 to December 31, the exchange reported a total market turnover of P9.3 billion across all listed instruments, an 18.1 percent increase year-over-year...

Global research firm Business Monitor International (BMI) has recently downgraded Botswana’s projected economic growth for 2026, citing ongoing risks and challenges confronting the nation’s economy. Following a 3.8 percent expansion in 2023, Botswana’s economy contracted by 3 percent in 2024. The primary drag on economic activity was subdued output in the mining and quarrying sector. Weak global demand for diamonds compelled Botswana’s miners to curtail production to avoid accumulating unprofitable inventory. This extended and deeper-than-anticipated...

Botswana’s annual inflation rate edged up to 4.1 percent in January 2026, marking a 0.2 percentage point rise from the 3.9 percent recorded in December 2025. The latest Consumer Price Index (CPI) data released this week attributes this uptick primarily to increasing costs in transport, food and non-alcoholic beverages, as well as personal care services and miscellaneous goods. The transport sector emerged as the dominant driver of inflation in January, contributing 1.6 percentage points to...

In a recent report released this week, local research firm Econsult cautioned that the government’s anticipated increase in borrowing from commercial banks and pension funds to finance budget deficits could exacerbate liquidity pressures within the financial sector and further constrain credit availability to the private sector. The 2025/2026 fiscal year is projected to record a budget deficit of P9.2 billion, equivalent to 3.3 percent of GDP. For the 2026/2027 fiscal year, the deficit is forecasted...

The Botswana government has been urged to ground its final 2026/2027 budget in realistic projections of revenues, expenditures, and deficits. Keith Jefferis, a Botswana-based economist and Managing Director of Econsult, issued this counsel earlier this week, just days ahead of the 2026/2027 budget speech scheduled for Monday, February 9, 2026. While acknowledging the inherent challenges of forecasting the upcoming budget, Jefferis emphasized the critical need for Finance Minister Ndaba Gaolathe to present a fiscal plan...