CBN stress test sparked banking stock sell-off -Rewane

THE Nigerian banking industry is witnessing a growing divide between well-capitalised lenders and institutions struggling with regulatory constraints, following the recent stress-testing exercise conducted by the Central Bank of Nigeria, according to Bismarck Rewane, Managing Director and Chief Executive Officer of Financial Derivatives Company.

Speaking at a Lagos Business School Breakfast Session, Rewane said the regulatory exercise has effectively created a two-tier banking landscape, separating institutions with sufficient capital buffers from those burdened by elevated provisioning requirements and dividend restrictions.

‘The banking sector has seen moderate corrections since the start of the stress test,’ Rewane noted, highlighting the impact of the exercise on investor sentiment and market performance.

According to data presented during the session, only a handful of lenders emerged from the exercise with the financial strength and regulatory approval to reward shareholders for the 2025 financial year. Among the banks cleared to declare dividends are Guaranty Trust Holding Company, Zenith Bank, Stanbic IBTC Holdings and Wema Bank.

GTCO led the pack with a dividend payout of N11.76 per share, while Zenith Bank distributed N8.75 per share. Stanbic IBTC paid N4.00 per share, and Wema Bank declared N1.25 per share, reinforcing their positions as some of the sector’s strongest capitalized institutions.

In contrast, several major lenders were unable to distribute dividends after failing to meet the regulatory requirements imposed by the stress test. Those affected include Access Holdings, First HoldCo, Fidelity Bank, FCMB Group, Ecobank Transnational Incorporated and United Bank for Africa.

The suspension of dividend payments has sparked a sell-off in banking equities on the Nigerian Exchange as investors reassess expected returns from the sector. Market participants say the restrictions have weakened the attractiveness of several banking stocks that have historically been regarded as reliable dividend plays.

Investor concerns have been further heightened by developments in the oil and gas sector. Analysts point to the recent Supreme Court ruling that lifted an asset freeze on Nestoil, a development that could require some lenders to reassess approximately $1.1 billion in oil-related exposures. Market observers warn that banks with significant exposure to the facility may face additional provisioning requirements, potentially placing further pressure on earnings and capital adequacy ratios.

The combination of regulatory scrutiny, dividend restrictions and uncertainty surrounding energy-sector loans has accelerated portfolio rebalancing across the market. Institutional investors are increasingly shifting funds toward banks with stronger capital positions and assured dividend prospects, while also building liquidity ahead of the anticipated listing of the Dangote Refinery.

The expected Initial Public Offering of Dangote Refinery is already attracting significant attention from fund managers, with many market participants positioning for what could become one of the largest listings in African capital market history.

Despite the short-term pressure on banking stocks, analysts argue that the CBN’s intervention is intended to strengthen the resilience of the financial system by compelling lenders to recognize potential risks early and maintain stronger balance sheets. However, they caution that the sector is likely to remain under pressure in the coming quarters as investors digest the implications of tighter regulatory oversight, higher provisioning requirements and a more selective dividend environment.

For now, the stress test has drawn a clear line across the banking industry-rewarding institutions with strong capital buffers while exposing vulnerabilities among lenders facing heightened regulatory and credit-risk challenges.

The Constitution said yes. Botswana hasn’t

Every June, the world erupts in rainbow colours. Corporate logos transform overnight. Development partners such as UN family and International Cooperations issue carefully worded statements about diversity and inclusion. Social media fills with declarations of allyship that, come July, quietly disappear.

Pride Month arrives dressed in celebration. But for many ordinary LGBTIQ people in Botswana, it arrives dressed in something far more complicated; a question we cannot stop asking ourselves:

What, exactly, are we celebrating?

I ask this not as an outsider looking in. I ask it as someone who stood at the heart of one of Botswana’s most defining moments in the struggle for queer rights, as one of the litigants in the landmark Thuto Rammoge case against the Government of Botswana, the case that compelled the state to legally recognise LEGABIBO after it had refused to do so simply because the organisation represented lesbian, gay and bisexual people.

I was in those courtrooms. I know what hope felt like in those rooms. And I know what it feels like now, over a decade after the Thuto Rammoge judgment, and years after the decriminalisation ruling, to still be waiting for that hope to reach the people it was supposed to free.

Botswana has, without question, made historic strides. Our courts have delivered progressive rulings that would be remarkable in any context on this continent. In 2019, the High Court decriminalised same-sex relations, striking down colonial-era provisions that criminalised intimacy between consenting adults. The Court of Appeal upheld that decision, affirming that human dignity cannot be selective. Our judiciary has shown genuine constitutional courage, repeatedly and publicly. These were not small victories. They were seismic. They changed the legal architecture of this country, and they deserve to be named as such.

But here is the uncomfortable truth that my extensive years of working with communities; in homes, in clinics, in community halls, in government offices and in international development agencies has taught me: a right that exists only on paper is not a right. It is a promise the state made and has not kept.

Today, many queer people are still navigating rejection at home. Many still fear violence. Many are still denied jobs and quality, non-discriminatory healthcare not because the law permits it but it does not but because no institution is actively ensuring the law is enforced. Many still sit silently at family gatherings where pastors and relatives casually preach hatred in the name of morality. Many still shrink themselves to survive workplaces, churches, schools and communities that remain hostile because nobody in authority has told those communities that the constitution applies here too.

The law decriminalised queer existence. But it did not and cannot on its own decriminalise queer people in the minds and hearts of society. That second transformation requires something the courts alone cannot deliver: intentional, sustained implementation.

And that is precisely what has been missing.

Decriminalisation without implementation is like building a road that leads nowhere. The infrastructure exists. But the people it was meant to serve cannot get through.

We know from decades of human rights practice across Africa and globally that legal reform is the beginning of the journey, not the destination. The moment a law changes, the harder work begins: training healthcare workers to treat queer patients with dignity; sensitising police officers who are often the first point of contact for queer people experiencing violence; ensuring schools have the frameworks to protect LGBTIQ learners; equipping civil society with resources to hold institutions accountable.

This is not abstract theory. This is the practical infrastructure of equality. And Botswana has not built it with any urgency.

Meanwhile, the opposition to queer inclusion is loud, organised and politically motivated. Religious leaders and conservative voices remain deeply invested in policing queer existence. Figures like former Cabinet Minister Biggie Butale have positioned opposition to LGBTIQ rights as a rallying cry. The commentary surrounding ongoing same-sex marriage debates has been deeply revealing, spend even a few minutes in those spaces online and you encounter levels of anger, disgust and obsession directed at queer people that are, candidly, frightening. And perhaps what is most painful is not simply the opposition itself, but the intensity of the hatred.

Which raises a question that I think we are often too polite to ask in public: what is the source of that pain?

Why does the existence of queer people provoke such emotional outrage? Why does another person’s identity feel like a personal attack on people who have never met them? Why do some people experience constitutional equality as though it were an act of aggression against themselves?

These are not legal questions. They are social, psychological and spiritual questions and they point to the reality that homophobia is rarely truly about queer people. It is about fear. Fear of difference. Fear of change. Fear generated by rigid, inherited frameworks of masculinity, gender and morality. It is often unresolved anxiety projected outward and it is consistently weaponised by those who find political or religious power in keeping communities divided.

Understanding this does not excuse it. But it is important, because it tells us that legal change alone was never going to be sufficient. You cannot litigate prejudice into extinction. You have to meet communities where they are, engage them honestly, and rebuild understanding from the ground up. That is the work. Long, slow, unglamorous work and it requires government, civil society, institutions and ordinary citizens to all be part of it.

True equality is not measured by what courts declare. It is measured by whether a queer child can grow up without shame.

I want to be honest about where I am sitting emotionally as I write this, because I think honesty is what this moment demands.

For the first time in a long time, I carry real hope. President Advocate Duma Boko has, throughout his public life, stood with minorities, defended constitutional freedoms and spoken about the dignity of all people including queer people. For many LGBTIQ persons in Botswana, this matters enormously. Leadership that recognises your humanity changes the emotional atmosphere of a country. It signals to institutions that they are expected to follow. It signals to communities that equality is not optional.

Perhaps, for the first time, many queer people in this country are beginning to imagine futures beyond mere survival. And that imagination and the ability to plan, to dream, to consider what a full life might look like is itself a kind of justice.

But hope is not a policy. And good intentions at the top do not automatically translate into changed conditions at the bottom. The gap between progressive leadership and transformed lived realities must be bridged deliberately, with resources, with accountability mechanisms, with a national plan that treats LGBTIQ inclusion not as a politically sensitive afterthought but as a constitutional obligation.

That plan does not yet exist. And so we must name that absence.

Botswana now stands at a crossroads that we have, frankly, been standing at for too long. We can continue congratulating ourselves for our progressive courts while doing nothing to translate those victories into changed conditions. Or we can begin the harder, more necessary work of changing institutions, building social support structures, funding community education and ensuring that every organ of the state understands that the constitution it swore to uphold applies to every single citizen, without exception.

Because this is what equality actually looks like in practice: a queer child in a rural village grows up without shame. A lesbian woman can rent a home without discrimination. A gay man can walk into a clinic without humiliation. A trans person can exist without becoming a spectacle. A queer couple can plan a future together without negotiating their own safety at every step.

That was the Botswana many of us were fighting for when we walked into those courtrooms. It is the Botswana my late Best friend and Comrade Thuto Rammoge was hoping and fighting for. It is the Botswana we have not yet built.

Pride is not simply a celebration. It is a reckoning. It is the refusal to pretend we have arrived when we clearly have not.

This is why Pride Month still matters , not because we have fully arrived, but precisely because we have not. It matters because visibility remains an act of courage in a country where queer people still navigate daily hostility. It matters because somewhere, a young person in a small village in Botswana needs to know they are not alone and that their country’s constitution says they deserve to be here just as fully as anyone else.

But Pride must also be a moment of unflinching honesty. Honest about the gap between our legal progress and the lives people are actually living. Honest about the work that has not been done. Honest about the fact that celebrating legal victories while people suffer is a form of dishonesty; comfortable for those of us who can afford to celebrate, but meaningless for those still waiting.

Botswana’s democracy has proven it can produce progressive law. The question this Pride Month is whether it is ready to do the harder thing: produce justice.

Not justice in theory. Justice in daily life. Justice you can feel.

That is what we were fighting for. And that fight is not over.

Azercell showcases AI-driven cybersecurity solutions at 4th National Cybersecurity Forum

The 4th National Cybersecurity Forum, organized on the initiative of the Azerbaijan Cybersecurity Organizations Association (AKTA), convened representatives of the public and private sectors, international experts, technology companies, and cybersecurity professionals. One of the leading enablers of Azerbaijan’s digital ecosystem, ‘Azercell Telecom’ LLC, supported the event as a platinum sponsor.

The forum served as an important platform for the exchange of international expertise, the discussion of emerging technologies, and the strengthening of cross-sector collaboration. Participants explored evolving cyber threats in the era of digital transformation, the growing role of artificial intelligence in cybersecurity, and modern approaches to digital risk management.

As part of the forum, Mais Sharifli, Head of the Cybersecurity Section at Azercell Telecom, participated in the panel discussion titled ‘Cyber Challenges in Digital Transformation.’ During his presentation, he shared practical results achieved through the application of artificial intelligence in the company’s cybersecurity operations. He also noted that Azercell currently provides more than 10 cybersecurity services to corporate customers.

Mais Sharifli highlighted that Azercell is the first telecom operator in the local market to implement an AI-driven architecture for cyber threat detection and the centralized management of the digital security ecosystem. He noted that the level of alignment between cybersecurity analysts’ decisions and AI-generated outputs has now exceeded 95 percent. Mr. Sharifli emphasized that the adoption of AI-powered systems has significantly improved operational efficiency, with some processes now being completed up to 40 times faster than through traditional approaches. In addition, these technologies enable advanced large-scale data processing and analytics, supporting the timely identification and mitigation of potential cyber threats.

Azercell continues to advance its cybersecurity capabilities in line with the Strategy of the Republic of Azerbaijan on information security and cyber security for 2023-2027, consistently implementing initiatives aimed at strengthening the country’s digital resilience and fostering a secure digital environment.

FCC needs over P330 million to revive infrastructure

Francistown City Council(FCC) is currently in dire need of an estimated P335 million to revive its crumbling infrastructure. Heavy rains experienced between February and April 2026 have also worsened the situation leaving a trail of destruction causing significant damage to the Francistown roads and other associated infrastructure.

As an interim measure the City Council requires approximately P12 million for pot hole patching and related maintanence works. The city council already has in place 7 000 bags of cold asphalt premix sufficient to to patch approximately 3 500m2 of potholes. Current works are focusing on major roads including Martin Luther King, Junior Road, Dinokwe Road, Diselammapa Road, New Bridge Road, Blue Jacket Road and Boipuso Road. However the A1 Central Police Road which has been closed for some time due to maintenance is now open for traffic.

Francistown Mayor Gaone Majere made the revelation when addressing a full council meeting last week.

In yet another shocking revelation, Majere expressed frustrations over the current dilapidated water infrastructure in Francistown under Water Utilities Corporation which dates as far back as the 70’s spanning close to 50 years. The aging infrastructure has also not been properly maintained over the years resulting in frequent pipe bursts and water leakages affecting parts of the city such as Blocks, Gerald Estates, Area S, Area W,Light industrial, Dumela Industrial and Minestone.

‘Records from Water Utilities Corporation indicate that more than 1 200 leakages have been reported. The main cause remains aging asbestos cement installed during the 1970’s,’ he said.

He however said in the short term Water Utilities Corporation continues to prioritize repairs and is in the process of outsourcing certain repair works to improve response times. Meanwhile the Mayor stated that the Greater Francistown Master Plan project estimated at around P3 billion under the National Development Plan 12 remains the city’s priority project. This Master Plan(2024 – 2048) maps out the region’s 24-year urban transformation into a leading logistical gateway and model city. The goal is to accommodate an anticipated population boom while driving economic revitalization of the city.

Street lighting illumination in the city currently stands at 45 percent against the required 90 percent. Majere said despite challenges such as vandalism, cable theft and shortages of materials improvements are expected following installations of solar streetlights under the Road Levy Funding Programme which commenced on 21 May 2026. On diversification of the city’s economy he said they remain committed to transforming Francistown into a resilient, competitive and sustainable economic hub aligned with Botswana’s aspiration under Urban Development Plan 5, National Development Plan 12 and vision 2026. In this regard he said the city remains committed to diversifying its economy through sectors such as tourism particularly sports tourism and the promotion of Francistown Heritage Trail. These initiatives are intended to position the city as a vibrant tourism and and investment destination while creating employment and business opportunities for local communities.

Hezbollah drone strikes fuel new round of regional fighting, analysts say

Rising cross-border violence and the increasing use of drones in the Israel-Lebanon theatre are intensifying regional tensions and raising concerns about civilian casualties, analysts say, AzerNEWS reports.

Security and policy analyst Wolfgang Pusztai has said that Hezbollah’s drone capabilities have played a significant role in triggering Israeli military responses, including recent strikes on Beirut that marked the latest escalation in hostilities involving Iran-linked actors.

Speaking to Al Jazeera, Pusztai noted that since the beginning of a ceasefire in April, approximately 30 Israeli soldiers had been killed in drone attacks originating from Lebanese territory.

‘The consequence for Israel was to push further into Lebanon, but it seems the Israelis were not very precise with regard to selecting their targets, as there is also a high amount of civilian casualties,’ he said.

The renewed Israeli strikes, which reportedly resulted in civilian casualties in Lebanon, have sparked widespread condemnation not only within Lebanon but also in Iran and broader international circles.

Analysts warn that the growing cycle of drone warfare, retaliatory strikes, and cross-border escalation risks further destabilizing an already volatile regional security environment.

From click to customer: The hardest part of selling starts after checkout

Businesses spend months-even years-perfecting a product, investing in research and development, improving packaging and spending heavily on marketing just to secure a sale. But the moment a customer clicks ‘checkout,’ the experience is suddenly in someone else’s hands: the logistics partner. That’s often where customer experience is truly tested.

Whether it’s a delayed parcel, a damaged item, or a wrong order, customers rarely separate fulfillment issues from the brand experience-even when the product itself is excellent. To them, the failed delivery is the brand experience. And nowadays, speed matters just as much-faster fulfillment often means faster delivery to customers, shaping satisfaction, repeat purchases and brand trust.

This becomes even more critical during major sales events, when order volumes spike. At scale, growth is no longer just about generating demand. It’s about fulfilling every order accurately, completely and on time-often within the same day.

Fulfillment: The silent driver of business growth

Fulfillment is one of the most important-but often overlooked-parts of running a modern business. It covers everything that happens between ‘order confirmed’ and ‘package delivered’: monitoring inventory, locating items inside the warehouse, packing orders correctly, sorting parcels and moving them.

Many growing businesses often start manually. Inventory may be tracked in spreadsheets, orders may be coordinated in chat groups and warehouse staff may rely on manual stock counts or handwritten packing lists.

While manageable at smaller volumes, these become difficult to sustain as orders increase. One inventory discrepancy can trigger a chain reaction that can multiply rapidly during peak periods: oversold products, delayed shipments, returns and customer complaints.

This is where tech-enabled fulfillment becomes critical. Instead of relying on disconnected tools and reactive problem-solving, technology synchronizes operations with real-time visibility, faster execution and tighter control.

Behind the Ninja Van fulfillment workflow

Solutions like Ninja Van Fulfillment help transform fulfillment from a manual operational burden into a streamlined, tech-powered growth engine anchored in operational excellence. With typically same-day fulfillment, businesses can improve speed and reliability while freeing up time and resources to focus on strengthening products, expanding SKUs, improving customer experience and scaling the business.

Here’s a look at how that engine runs:

The checkout confirmationUpon confirmation, the next challenge is locating the correct product quickly and accurately, especially in large warehouses handling thousands of SKUs.

While human teams still play a critical role in warehouse operations, systems help organize inventory locations and guide pickers directly to the correct shelves and bins, so they don’t have to rely on memory or search manually.

Orders are then individually picked and packed by warehouse personnel, with barcode scanning systems verifying that each item matches the customer order before dispatch. This adds a layer of quality control while maintaining operational speed.

The packing stageBefore parcels leave the warehouse, accuracy takes center stage through multiple checkpoints. It starts at the picking stage, where items are scanned upon selection to verify the correct SKU. From there, orders go through another critical checkpoint: packing.

Every station is supported by CCTV monitoring, creating a recorded reference for each order and providing added assurance when proof of proper packing is needed. Custom packing requirements can be accommodated, too, so brands can maintain specific handling or presentation standards. Finally, waybills are automatically generated and printed based on the designated logistics partner.

The routing and deliveryOnce sorted, parcels move toward final-mile delivery. What might seem like a simple parcel handoff actually involves multiple layers of coordination across hubs, transport routes and delivery teams. Strong upstream accuracy is needed as even minor oversight during this stage can lead to significant disruptions, such as parcels being routed to the wrong hub or lane.

At the final-mile stage, Ninja Van enables businesses to work with different third-party logistics (3PL) providers based on their operational needs, delivery priorities and customer expectations.

In the event of a return, Ninja Van also manages the reverse logistics process end-to-end-reintegrating products back into the system with minimal disruption.

Because fulfillment systems are deeply interconnected, operational errors rarely stay isolated-they compound. This is why a tech-powered system is critical, stopping minor discrepancies from turning into major business friction.

Business growth needs more than just more orders

Sustainable business growth depends not only on generating orders but also on consistently delivering a reliable customer experience. Because of this, fulfillment is no longer just a backend operational function. It has become a critical part of customer experience and business growth.

Fulfillment solutions like Ninja Van Fulfillment can improve visibility, operational predictability and execution accuracy, helping businesses reduce costly fulfillment errors so businesses can scale more confidently during periods of high demand.

Ultimately, in e-commerce, success isn’t only about selling more-it’s about delivering correctly, consistently and reliably every single time.

Makwala Starts the Race to Philanthropy in Sport

Botswana athletics legend Isaac Makwala has taken another significant step in giving back to society through the establishment of the Isaac Makwala Foundation.

The foundation, which will be officially launched on 19 June at the Gaborone International Convention Centre (GICC), aims to preserve the sprinter’s legacy, while creating opportunities for young people across the country.

Further to this, the foundation aims to empower communities through sport development, education, mentorship, youth empowerment and social impact programmes.

Minister of Sport and Arts, Jacob Kelebeng, will officiate at the foundation’s launch, which is expected to attract stakeholders from the sporting fraternity, government, the corporate sector and the wider community.

Collen Kebinatshipi

According to the foundation, its mission is to use sport as a tool to inspire positive change, develop talent and create opportunities for young people while promoting sporting excellence throughout Botswana.

Makwala, an award-winning athletics star who has represented Botswana with distinction on the international stage, says the foundation reflects his desire to contribute to the development of future generations.

In his enduring sporting career, the solo runner, as Makwala is often remembered, became one of Africa’s most recognised sprinters. His career on the track earned him numerous accolades and brought pride to Botswana.

His influence and achievements have inspired many young athletes across sporting codes in the country. His push-up celebratory routine can often be seen imitated by the country’s upcoming stars, including the likes of Collen Kebinatshipi and rising tennis star Ntungamili Raguin, an indication to his impact on the country’s sport landscape.

The foundation seeks to build on that inspiration by providing practical support to aspiring sportsmen and women. Among the key objectives of the foundation is to nurture and amplify the enduring legacy of its founding trustee. The organisation also aims to empower young people by providing opportunities to develop skills, confidence and leadership through sport.

The foundation will focus on promoting the development of upcoming athletes in Botswana by creating programmes that support talent identification and growth. Young beneficiaries will have access to life skills training, coaching and mentorship initiatives designed to prepare them not only for sporting success but also for life beyond the field of play.

Another important objective is to encourage participation in sporting activities and foster greater community engagement. Through various programmes and events, the foundation hopes to use sport as a platform to bring communities together while promoting healthy lifestyles and positive social values.

Ntungamili Raguin

The organisation also intends to implement educational and social impact programmes aimed at addressing challenges faced by young people. These initiatives are expected to complement its sporting activities by helping beneficiaries develop important personal and professional skills.

The foundation’s leadership believes that investing in young people through sport and education can contribute significantly to national development. By creating opportunities and providing guidance, the organisation hopes to help young people realise their full potential.

A key feature of the initiative is its partnership with Precious and Partners, an award-winning Pan-African corporate law practice. The partnership is expected to provide strategic support to the foundation as it rolls out its programmes and expands its reach across Botswana.

The collaboration demonstrates the growing role of the private sector in supporting community development initiatives and youth empowerment projects. Foundation officials believe that strong partnerships will be critical to achieving the organisation’s long-term goals.

The launch at GICC on 19 June is expected to provide further details on the programmes that will be implemented in the coming months. Organisers say these initiatives will focus on creating opportunities for young people while strengthening Botswana’s sporting ecosystem.

For many observers, the establishment of the Isaac Makwala Foundation represents an important milestone in the athlete’s journey from sporting icon to community leader. It also highlights the growing trend of sports personalities using their influence and experience to make a lasting impact beyond their competitive careers.

Monument dedicated to Karabakh Horse unveiled in Switzerland

An opening ceremony for a monument dedicated to the Karabakh horse was held in the city of Solothurn, Switzerland, with the support of the Azerbaijan Equestrian Federation and the Azerbaijani Embassy in Switzerland, and organized by the Azerbaijan-Turk Cultural Center, AzerNEWS reports.

Speaking at the ceremony, the head of the Azerbaijan-Turk Cultural Center, Cevzet Aras, expressed gratitude for the donation of the monument to the association. He noted that this initiative holds special moral and cultural significance for the Azerbaijani community living in Switzerland. He also highlighted that the center has been operating since 1992 and has always felt the support of the Azerbaijani state.

Azerbaijan’s Ambassador to Switzerland, Fuad Isgandarov, stated that the inauguration of the monument dedicated to the Karabakh horse carries important symbolic and cultural meaning. He stressed that the Karabakh horse represents the ancient history, rich cultural heritage, and national identity of the Azerbaijani people.

The ambassador also said that such initiatives contribute to preserving national and moral values among Azerbaijanis living abroad, promoting Azerbaijani culture, and strengthening solidarity among diaspora organizations. He added that these monuments play an important role in reinforcing patriotism and national identity among the younger generation.

Fuad Isgandarov further noted that, especially after the Patriotic War, the Karabakh horse has become one of the key symbols representing Azerbaijan’s victory, strength, and resilience. He thanked the organizations, organizers, and participants who supported the realization of this initiative.

The event was attended by members of the Azerbaijani diaspora in Switzerland, local community representatives from Solothurn, and staff of the Azerbaijani Embassy in Switzerland.

Azerbaijan revises subsidy procedure for agricultural production

Azerbaijan plans to introduce subsidies for horticulture, AzerNEWS reports.

President of the Republic of Azerbaijan Ilham Aliyev has amended his decree ‘On Improving State Support for Agriculture and Leasing Activities in the Agro-Industrial Sector’ dated December 19, 2018.

According to the decree, the ‘Rules for Subsidizing Agricultural Production’ have been updated.

A horticulture subsidy is a subsidy provided to farmers per hectare of cultivated land to compensate for a portion of the costs incurred in the first year of establishing a garden for growing (planting and providing agrotechnical services) crops on land designated for perennial crops in accordance with its intended purpose, for the purchase of agricultural machinery, conducting agrochemical soil analysis, utilizing agricultural services, installing modern irrigation systems, and conducting phytopathological analysis of seedlings.

Govt borrowing threatens to crowd out private sector

Botswana’s private sector is expected to face even more challenges in 2026. A new report from Business Monitor International (BMI) warns that increased government borrowing could make it harder for businesses to get loans in an already tight credit market.

The report describes an economy that is having trouble bouncing back after shrinking by about 0.7 percent in 2025. BMI predicts only a small recovery, with growth of 1.5 percent in 2026, due to weak global demand for diamonds, ongoing uncertainty in mining, and rising financial pressures.

While much of the report focuses on the banking sector, the implications extend far beyond bank balance sheets and directly affect businesses, entrepreneurs, and ordinary citizens seeking access to credit.

‘With fiscal buffers eroding and financing requirements increasing, the government is likely to maintain a significant presence in domestic debt markets,’ BMI said.

The report warns that the effects could be serious.

‘This raises the risk of crowding out private sector credit, as banks allocate a larger share of their balance sheets to government securities.’

Put simply, banks might choose to lend more to the government instead of businesses, since government loans are seen as safer and more reliable. This could make it harder for companies to get the money they need to grow or run their operations.

This warning comes when Botswana’s private sector is already in a tough spot. BMI expects household incomes to stay under pressure in 2026, which will lower demand for goods and services. Companies are also likely to delay investments because of the uncertain economy.

‘Corporates are likely to delay investment decisions amid uncertainty,’ the report states, adding that banks will continue prioritising lower-risk lending while maintaining cautious credit standards.

These sentiments come at a time when local economist Dr Keith Jefferis of Econsult has raised similar concerns in his recent reviews. He warned that increased government borrowing could further drain liquidity from the financial sector and crowd out private sector lending. With banks already operating under tighter liquidity conditions and rising credit risk, increased government absorption of available funds could limit credit extension to productive sectors, undermining private-sector-led growth.

The BMI report also points out that rising interest rates are having an impact.

Following a sharp rise in inflation, driven largely by higher global energy prices linked to the ongoing US-Iran conflict, the Bank of Botswana raised its benchmark interest rate by 200 basis points to 5.5 percent in April 2026.

BMI expects inflation to average 9.7 percent this year, well above the central bank’s target range, with another interest rate increase likely before year-end.

This means that loans will become more expensive for both households and businesses.

‘Higher lending rates will suppress credit demand and reduce affordability, particularly among households,’ BMI noted.

Businesses already facing weak sales and higher costs may find it even harder to expand or create jobs if borrowing becomes more expensive.

The banking system is also under pressure because there is still not enough cash available.

Even though the central bank stepped in and the government spent more in 2025, BMI says there are still big problems in the system. These include most deposits being held by a few banks, a reliance on short-term funding, and some banks having much more cash than others.

BMI expects loans to customers to grow by only 4.2 percent in 2026, which is much lower than the 10-year average of 7 percent.

The report is also worried about Botswana’s worsening financial situation. Lower mining income and less money from the Southern African Customs Union are putting more strain on government finances. Public debt has already hit the legal limit of 20 percent of GDP, which means the government has less room to spend and must rely more on borrowing within the country.

BMI notes that government securities already account for around one-fifth of banking sector assets.

‘Further increases would limit the availability of credit to households and businesses, reinforcing the weak credit growth outlook,’ the report warned.

While Botswana’s banks remain well-capitalised and financially stable, BMI cautions that their ability to support economic recovery will become increasingly constrained.

What it means for households, businesses, and banks?

The economy is likely to grow slowly in 2026. Households will have to deal with higher costs of living and borrowing, businesses will struggle to get affordable loans, and banks will be more careful about lending. All of this could slow down economic activity and job growth.

Many people in Botswana may have a tougher year ahead. Higher interest rates will make it more expensive to borrow for homes, cars, and personal needs. At the same time, rising prices will keep pushing up the cost of living, so families will have less buying power. As businesses slow down hiring and investment, there may also be fewer job opportunities.

It may become harder and more expensive for companies to get loans from banks. As the government borrows more, banks might prefer lending to the government since it is seen as a safer bet. This could slow down business growth, reduce investment, and limit job creation, especially for small and medium-sized businesses.

Botswana’s banks are still stable and have enough capital, but they are becoming more careful. With more government borrowing, less cash available, and ongoing uncertainty, banks will probably lend less freely. While banks might gain from holding more government debt, this could mean less support for private businesses and a slower economic recovery overall.

Botswana’s financial sector is at a critical point. Higher interest rates have helped keep deposits stable and support the economy, but they are also making it harder for people and businesses to get loans. At the same time, the government’s need for more money could make cash even tighter and make it even harder for the private sector to borrow.