Botswana’s banking sector is battling a liquidity squeeze that emerged in the latter half of 2024 and has persisted into the first quarter of 2025, despite banks reporting strong profit growth.
Tight liquidity conditions have heightened competition for deposits, increased borrowing costs, and constrained credit expansion. While relief is expected after April, when the government injects fresh funds into the economy through its new fiscal year budget, uncertainty lingers, particularly if diamond sales continue to underperform, further straining government revenues and the broader financial system.
There's more to this story
But to keep reading, we need you to subscribe.
Investigative journalism is an indispensable part of a healthy society, but it's also expensive to produce. We are reliant on subscriptions to fund our work, and while you can enjoy most of our stories for free, a small number of premium features are reserved for subscribers.
You can subscribe for one week, a month or a full year - the choice is yours.
Save 77% on an annual subscription. Click here to find out how.
Existing subscribers can log in to keep reading here.
