Category: Sunday Standard

Letshego Africa Holdings’ decision to withdraw from five African markets follows years of mounting losses that ultimately undermined one of the lender’s most ambitious growth bets.

Documents circulated to shareholders ahead of a vote on the proposed disposal of subsidiaries in Ghana, Tanzania, Nigeria, Rwanda and Uganda show the operations generated a combined loss after tax of P519.5 million in the year ended December 2025, despite producing operating income of P1.46 billion.

The businesses held assets worth P3.82 billion and carried a net asset value of P819.9 million at year-end, highlighting the scale of the investment that failed to translate into sustainable returns.

The figures offer fresh insight into the financial pressures behind Letshego’s decision to retreat from markets that were once central to its pan-African expansion strategy.

Earlier this year, the Botswana Stock Exchange-listed microfinance lender announced an agreement to sell the subsidiaries to Axian Digital Venture Holding and Management Limited for US$62.7 million, equivalent to about P850 million. The transaction forms part of a broader restructuring programme aimed at improving profitability and strengthening the group’s balance sheet.

In its shareholder circular, Letshego attributes the poor performance of the businesses to a combination of foreign exchange volatility, elevated inflation, regulatory shifts and rising credit impairments across several East and West African markets.

The disposal is significant. The assets being sold account for nearly one-fifth of the group’s consolidated asset base, marking a decisive shift away from the continental expansion model that drove Letshego’s growth for more than a decade.

Management says the exit will enable the group to redeploy capital towards higher-return markets, improve capital efficiency and bolster liquidity. Sale proceeds are expected to be directed towards debt reduction, working capital requirements and investment in core operations.

Yet the strategic reset comes with a financial penalty. Letshego estimates the transaction will result in an accounting loss of approximately P281 million.

Botswana has recorded the lowest suspected digital fraud rate in Africa according to the findings from TransUnions H1 2026 update. However fraudsters are already changing tactics. The Frauds Trends Report update by the organization found out that among all the African countries analysed in 2025, they were 0.9 percent of transaction attempts involving consumers which were suspected to be digital fraud in Botswana.

This is below the global average of 3.8 percent and represents the lowest rate among the African countries analyzed. However, according to the report, despite this Year-over-Year(YoY) decline in suspected digital fraud for Botswana and globally, fraudsters continue to adapt by turning to high-trust, scam-based tactics that can by-pass traditional safeguards.

‘Botswana has not experienced widespread fraud, but the nature of fraud risk is beginning to shift. As digital services become more formal and widely trusted, fraudsters are increasingly targeting these environments,’

‘This is a natural stage of digital growth and highlights the need to strengthen protections as confidence in digital services expand,’ said Amrit Reddy, Senior Director of Fraud Product Management at TransUnion Africa.

The report suggests that digital fraud risk is highest at account creation in Botswana. Despite the fact that suspected fraud rates appear lower compared to 2024, risk remains elevated at specific points in the consumer life cycle, particularly where criminals attempt to create or manipulate identities in Botswana. The highest rate of suspected digital fraud in 2025 across the consumer life cycle occurred at account creation(2.6 percent), followed by account login(0.8 percent) and during financial transactions (0.5 percent).

In addition, Botswana’s fraud profile reflects an early – to -mid stage digital market where onboarding and account creation remain the primary points of exposure. According to the report, this mirrors broader global and Africa-wide trends in markets where digital identity systems are still evolving.

‘Experience from other countries shows that the phase does not last indefinitely. As consumers build longer term digital relationships with banks, retailers and service providers, fraud risk tends to move beyond onboarding toward login and account access, often through impersonation or credentials misuse,’ said Reddy.

‘The key takeaway for Botswana is timing. Strengthening onboarding and early-stage identity checks can help prevent more complex fraud patterns emerging as digital adoption accelerates. Early safeguards can make a meaningful difference as the digital ecosystem matures,’ she added.

Across Africa, suspected digital fraud risk varies by industry, reflecting local user behaviour and where criminals see opportunities. For attempted transactions involving consumers in Botswana, retail recorded the highest suspected digital fraud attempt rate in 2025 at 1.9 percent, followed by Gaming(online sports betting, poker etc) at 1.8 percent and financial services at 1.1 percent.

As fraud tactics evolve, TransUnion has advised consumers to help reduce their risk by safeguarding personal information, remaining cautious of unsolicited calls and messages and regularly reviewing their credit information for suspicious activity. Organizations have also been advised to ensure that their fraud strategies extend beyond compliance to actively protect trust across the entire consumer lifestyle, particularly account creation at points where criminals attempt to exploit established relationships through scams and impersonation.

‘Botswana has the advantage of foresight. The global fraud playbook is already written. The opportunity now is to act before the next phase arrives,’ cautioned Reddy.

TransUnion is a global information and insights company with over 13 000 associates operating in more than 30 countries and territories including, Botswana, Kenya, Malawi, Namibia, Rwanda, South Africa, Eswatini and Zambia.

Botswana’s fight against inflation appeared largely successful in 2025, with consumer price growth falling below the central bank’s target range for a second consecutive year. Yet beneath the headline numbers, persistent increases in food prices continued to erode household purchasing power, particularly among lower-income families.

According to Statistics Botswana’s Consumer Price Index review for 2025, average annual inflation eased to 2.7 percent from 2.8 percent in 2024 and well below the 12.1 percent peak recorded in 2022 during the global inflation shock.

The outcome placed inflation beneath the Bank of Botswana’s medium-term objective range of 3 percent to 6 percent, underscoring a sharp reversal from the price pressures that followed the pandemic and supply-chain disruptions.

However, the moderation in overall inflation masked growing pressure in essential household spending categories.

Food and Non-Alcoholic Beverages inflation accelerated to 5.4 percent in 2025 from 4.8 percent the previous year, making it one of the largest contributors to overall price growth. Statistics Botswana noted that sustained increases in food costs could disproportionately affect poorer households and potentially slow progress in reducing poverty.

The steepest increases were recorded in fruits, coffee, tea and cocoa, milk products, and fish. Fruit prices rose by 12 percent during the year, while coffee, tea and cocoa prices increased by 13.9 percent.

The low inflation environment was partly supported by government intervention. Housing, Water, Electricity, Gas and Other Fuels inflation contracted by 1.4 percent following reductions in electricity and water tariffs, helping to offset rising prices in other sectors.

Yet emerging trends suggest inflation risks have not disappeared. Tradeable inflation, which captures goods exposed to international markets and exchange-rate movements, increased to 3.5 percent from 3.0 percent in 2024, indicating growing imported price pressures.

The data highlights a widening gap between macroeconomic indicators and household experience. While Botswana has succeeded in restoring overall price stability, the persistence of food inflation suggests the benefits have not been evenly felt across the economy.

Botswana’s fiscal savings account has staged a remarkable recovery after months of decline, with fresh Bank of Botswana figures showing a sharp rebound in the Government Investment Account (GIA) during March.

The latest central bank financial statements show that the GIA’s Pula Fund component surged to P8.66 billion at the end of March, up from just P106.5 million in February and P1.16 billion in January. The turnaround follows a prolonged erosion of the account that had seen it fall from P6.54 billion in March last year to a low of just over P100 million a month ago.

The rebound comes at a time when Botswana is grappling with shrinking diamond revenues, widening fiscal pressures and slower economic growth, making the performance of government savings and reserves a closely watched indicator.

While the Bank of Botswana does not provide detailed explanations in its monthly statements, the movement appears linked to changes in the valuation of foreign reserve assets and exchange-rate fluctuations that influence the central bank’s balance sheet.

The recovery in the GIA coincided with a jump in total shareholder funds, which rose to P43.4 billion in March from P34.8 billion in February. The currency revaluation reserve also increased to P18.74 billion from P17.66 billion over the same period.

Foreign assets, which underpin Botswana’s external reserves, climbed to P55.95 billion from P55.26 billion in February and P47.43 billion in December.

However, the recovery was not reflected in reserves measured in United States dollars. Foreign exchange reserves declined to US$3.91 billion in March from US$4.01 billion in February, suggesting that currency movements continued to weigh on the value of reserve holdings.

For government, the rebound offers a rare bright spot amid continuing pressure on public finances.

Botswana has enlisted the services of a United States-based consulting firm to help market and attract investors for an ambitious energy infrastructure programme worth nearly US$800 million (about P10.8 billion).

Documents seen by Sunday Standard which were recently filed with the United States Department of Justice under the Foreign Agents Registration Act (FARA) reveal that the Government of Botswana has engaged Fang Consulting LLC, a North Carolina-based and solely owned by American businessman Eric Li, to advance Botswana’s development and investment interests.

Reports indicate that Fang Consulting operates as a subcontractor for the Future Trends Group (FTG). FTG is an international growth acceleration organization led by Farzam Kamalabadi, who was appointed as a special envoy for international relations and economic development for Botswana by President Duma Boko in April 2025.

FARA Registration documents also show that Fang Consulting registered with FARA on January 15, 2026 as a foreign agent representing the Government of Botswana , identified Botswana as its foreign principal. The company stated that its business involves ‘consulting and looking for strategic partnerships’ and foreign investment opportunities.

‘As the Director of the Registrant, I will engage directly with U.S. government officials (including dfc and state Department staff) and congressional offices to advocate for U.S. investment in Botswana; I will also facilitate commercial and diplomatic meetings for the foreign principal to promote economic development and bilateral cooperation,’ Li states in his filing with FARA.

He added that; ‘I will engage in communications with U.S. Executive Branch officials (including the DFC and Department of State) and Legislative Branch staff to advocate for increased U.S. economic engagement with Botswana; I will disseminate information regarding investment opportunities in Botswana’s mining and energy sectors to encourage U.S. government support and financing for these projects, aiming to strengthen bilateral commercial ties.’

The filing comes as Botswana seeks billions in foreign capital to finance a sweeping energy expansion programme that includes solar farms, battery storage facilities, transmission networks and cross-border electricity interconnectors designed to turn the country from a net power importer into a regional energy exporter.

The documents accompanying Fang Consulting LLC filing with FARA and submitted by the Botswana Government show that at the centre of the lobbying effort is a portfolio of projects submitted alongside the FARA registration.

The proposal, prepared by the Government of Botswana through Ministry of Minerals and Energy, outlines eight major energy projects with a combined estimated cost of US$799.89 million, equivalent to approximately P10.8 billion at current exchange rates.

The largest component is a planned 1.5-gigawatt solar photovoltaic programme, which government says could eventually be expanded to 8GW depending on market demand. The project alone carries an estimated price tag of US$300 million and would be implemented through Independent Power Producers (IPPs) under long-term power purchase agreements with Botswana Power Corporation.

The government is also seeking US$200 million for a 500MW Battery Energy Storage System aimed at storing surplus renewable energy and stabilising the national grid.

Other projects include the Botswana-South Africa 400kV interconnector valued at US$150 million, the Botswana-Zambia interconnector worth US$50 million, the Morupule-Jindal transmission line estimated at US$49 million, and a further US$50 million earmarked for upgrades to the national transmission and substation network.

According to the proposal, Botswana currently has installed generation capacity consisting mainly of coal-fired power stations and diesel peaking plants, while demand continues to rise. Authorities also want renewable energy to account for up to 50 percent of the country’s energy mix by 2030.

The documents state that the projects would attract foreign direct investment, create jobs, improve energy reliability and position Botswana as a net exporter of electricity within the Southern African region.

The filing states that activities on behalf of Botswana could include emails, publications and press releases targeted at public officials, legislators and other audiences.

The proposal by Botswana notes that 1.5GW of solar projects are already under development and that the country intends to significantly increase renewable generation capacity over the coming years.

Officials envision a future where Botswana not only meets domestic electricity demand but exports power across the Southern African Power Pool through expanded transmission networks linking South Africa, Zambia, Namibia and Zimbabwe.

The interconnector projects are specifically designed to strengthen regional energy trade while reducing the country’s vulnerability to supply disruptions.

On its website, FARA says Botswana currently has two active filings which reveal a split in the nature of principals.

‘The Government of Botswana has engaged Fang Consulting LLC for strategic consulting, indicating an interest in official-level guidance and advisory services within the U.S. sphere,’ sys FARA.

It further states that; ‘Separately, Duma Boko, identified as a political party figure, has retained Dickens and Madson Canada Inc. for lobbying, suggesting an effort by non-state actors or (political) figures to advance their interests in the U.S capitol,’ it says.

Botswana Vaccine Institute’s (BVI) struggle to meet growing regional demand for foot-and-mouth disease (FMD) vaccines is beginning to exact a commercial cost, with South Africa increasingly turning to alternative suppliers after years of relying on the state-owned producer.

The shift shines a spotlight on longstanding capacity constraints at BVI, which has battled production disruptions, aging infrastructure and maintenance challenges at a time when demand for livestock vaccines across Southern Africa continues to rise.

South Africa’s Agriculture Minister John Steenhuisen recently cited production delays and export interruptions at BVI as reasons for sourcing vaccines from Argentina’s Biogénesis Bagó and Turkey’s Dollvet. The decision followed recurring supply shortages during a period when South Africa was battling FMD outbreaks.

For Botswana, the development raises concerns about BVI’s ability to defend its dominant position in the regional vaccine market. South Africa is BVI’s largest customer, purchasing 1.6 million doses during the 2025/26 financial year.

The problem appears to be one of scale. While demand from Southern African Development Community (SADC) countries is estimated at about 43 million doses annually, BVI’s maximum production capacity stands at roughly 25 million doses.

Operational challenges have compounded the problem. The institute has repeatedly had to suspend production for sterilisation and maintenance, while aging equipment has become increasingly expensive to maintain. Some spare parts are no longer readily available, limiting operational efficiency and affecting output.

The numbers tell the story. In the 2023/24 financial year, BVI produced 14.26 million monodoses of blended FMD vaccines, missing its target of 20.9 million doses by nearly a third.

The institute is betting on a P300 million expansion project, due for completion in 2027, to reverse the trend. Until then, however, BVI faces the risk of losing market share as regional buyers prioritise reliable supply over historical relationships, potentially weakening one of Botswana’s most successful export-oriented state enterprises.

Botswana has launched construction of a P25.5 billion mixed-use development near Sir Seretse Khama International Airport, marking one of the country’s largest private-sector-led investments as authorities seek new sources of growth beyond diamonds.

Dubbed New Botswana City, the project is being developed through a partnership between Botswana Development Corporation (BDC) and UAE-based ALBADDAD Holding. The development’s estimated cost is equivalent to roughly 10 percent of Botswana’s 2024 gross domestic product, underscoring the scale of the bet being placed on trade, tourism and business services as future growth drivers.

The project will be anchored by a 124,000-square-metre exhibition and convention centre, which developers say will position Botswana as a regional destination for conferences, trade exhibitions and business tourism. Plans also include commercial districts, hotels, residential developments and retail facilities.

The investment comes at a time when Botswana is grappling with the economic fallout from weak diamond demand, which has hit export earnings, government revenues and economic growth. Officials increasingly view diversification as critical to reducing the country’s dependence on mining.

BDC’s contribution to the project is land within the airport special economic zone. In return, the state-owned investment agency will receive a ring-fenced five percent equity stake, allowing government participation without assuming the full financing burden of the development.

The developers estimate the project could support between 14,000 and 21,000 jobs during construction and up to 37,500 direct and indirect jobs once fully operational.

The development is expected to support Botswana’s competitiveness under the African Continental Free Trade Area by providing a trusted platform for trade conversations, investment delegations, exhibitions,

conventions and business tourism. Regionally, it strengthens the case for Botswana as a serious SADC trade, business tourism and investment platform, with supporting demand for transport, logistics and local supply chains.

Botswana’s banking sector remained firmly profitable in the first quarter of 2026, but rising funding costs and growing credit risk pressures weighed on earnings, signalling a more challenging operating environment for lenders.

According to Bank of Botswana data, the country’s nine commercial banks posted a combined net profit of P851.5 million in the three months to March, down 13.8 percent from P988.1 million in the same period last year.

The decline reflects a growing squeeze on margins despite continued growth in lending income. Interest income rose 14.5 percent to P3.17 billion as banks benefited from larger loan books and interest-bearing assets. However, the cost of funding those assets climbed much faster.

Interest expenses surged 75.9 percent to P1.6 billion from P908.5 million a year earlier, reducing net interest income by 15.5 percent to P1.57 billion.

The figures suggest that banks are paying significantly more to attract and retain deposits at a time when liquidity conditions have tightened and competition for funding has intensified.

To offset the pressure, lenders increasingly relied on non-interest income. Revenue from fees, commissions, foreign exchange transactions and trading activities climbed 31.4 percent to P1.3 billion, raising its contribution to total operating income to about 45 percent from 35 percent a year earlier.

Even so, higher costs continued to weigh on profitability. Non-interest expenses rose 9.8 percent to P1.63 billion, while provisions for bad and doubtful debts increased 35.2 percent to P121.1 million, indicating growing caution about potential loan defaults.

The results come as Botswana’s economy continues to feel the effects of weak diamond demand, which has slowed growth and put pressure on household and business finances.

While profits have declined from last year’s highs, the sector remains resilient. Earnings were still above levels recorded in 2024 and 2023, suggesting banks remain well positioned despite a more demanding operating environment.

Botswana remains heavily dependent on imported food staples despite maintaining stable food availability levels and achieving self-sufficiency in some locally grown crops, according to the country’s first comprehensive Food Balance Sheet.

The report, compiled by the Ministry of Lands and Agriculture and Statistics Botswana with support from the Food and Agriculture Organisation (FAO), found that Botswana produced enough food to provide an average of 2,690 kilocalories per person per day between 2021 and 2023, comfortably above internationally accepted minimum dietary energy requirements.

However, beneath that apparent stability lies a structural vulnerability. The country remains overwhelmingly reliant on foreign suppliers for key grains consumed by households and businesses.

‘The national FBS results indicate that the country relies more on imports for major cereal crops especially rice, wheat and maize,’ the report states.

According to the findings, Botswana imported all of its rice requirements during the review period, while import dependency for wheat ranged between 98% and 99%. Maize, a dietary staple, also remained heavily import-dependent, with imports accounting for 80% to 89% of domestic supply.

Domestic production tells a different story for traditional grains. The report found Botswana was consistently self-sufficient in millet, with production exceeding domestic demand in some years, while sorghum production remained relatively strong. ‘The overall FBS results shows that Botswana is self-sufficient on sorghum and millet and highly dependent on imports for wheat, maize and rice for the years 2021-2023,’ the report says.

The data also sheds light on what is feeding the nation. More than half of the country’s dietary energy supply comes from just five commodities: maize flour, wheat flour, sunflower oil, sugar and milk. Flour of maize alone accounted for 21% of total daily calorie intake, making it the single largest contributor to Botswana’s food energy supply.

While calorie availability remained broadly stable, some nutritional indicators moved in the opposite direction. Protein availability declined from 75.3 grams per person per day in 2021 to 69.8 grams in 2023, while supplies of magnesium, zinc and iron also showed weakening trends over the period.

The report warns that Botswana’s food system remains exposed to external shocks through its dependence on imported staples. It recommends greater crop diversification, increased investment in agricultural research, support programmes for farmers and the development of drought-resistant crop varieties to strengthen long-term food security.

The publication marks a milestone for Botswana’s agricultural statistics. Officials described it as the country’s first national Food Balance Sheet, a tool designed to provide a comprehensive picture of food supply, consumption and nutrition trends. ‘The FBS data helps to assess whether a country is food self-sufficient or more dependent on food imports to feed its population,’ the report notes.

The dissolution of the Botswana Housing Corporation (BHC) Board may be linked to mounting frustration within government over the corporation’s failure to advance the flagship Kgale housing development project. It is alleged that both the board and executive management failed to deliver despite the availability of investors willing and financially capable of funding the development.

According to a source familiar with discussions held during a staff general meeting on Friday, the Minister of Water and Human Settlement Onnetse Ramogapi expressed dissatisfaction with the pace of progress at BHC, particularly regarding the Kgale project. The project has failed to move beyond preliminary stages more than a year after key decisions were expected to have been made.

A source who attended the meeting said the Minister expressed his frustration that nearly one year and two months after efforts to advance the project began, BHC had not only failed to commence implementation but had also struggled to conclude the process of selecting a preferred development partner.

‘The concern was not only that the project has not started, but that even the process of identifying and selecting the most suitable company has taken far too long,’ the source told this publication.

The allegations emerged a day after the Ministry announced the dissolution of the BHC Board through a press release issued on June 4, 2026. The statement cited powers granted to the minister under Section 6(3) of the Botswana Housing Corporation Act but did not provide specific reasons for the decision.

However, sources contend that concerns over project execution, strategic leadership and institutional performance formed part of the dissatisfaction that led to the board’s removal.

The Minister is said to have told staff that the board had failed to provide the strategic direction required to advance government’s ambitious target of delivering 100,000 housing units. Sources further alleged that the board did not effectively drive key aspects of BHC’s mandate and failed to take decisive action against individuals perceived to be obstructing progress within the organisation.

The minister is also said to have reminded staff that government had actively supported both the executive committee and the board by providing guidance on potential delivery models, including partnerships with private investors capable of financing and accelerating housing developments. While these proposals were reportedly accepted in principle and documented, sources claim implementation never followed.

‘The minister’s view was that there had been support and guidance from government on how to unlock delivery, including bringing in investors, but the agreed interventions were not translated into action,’ another sourcen who attended the meeting said.

The Kgale development is regarded as one of BHC’s most strategic projects and is expected to make a significant contribution to housing delivery, job creation and economic growth. Sources say investors with access to capital have expressed interest in participating in the project, leading to the government’s frustrations about why progress has remained slow despite apparent market appetite.

In announcing the dissolution of the board, the Ministry thanked the outgoing directors for their service and assured the public that service delivery at the corporation would not be affected. The ministry also indicated that a new board would be appointed in due course.

Neither the Ministry nor BHC has publicly linked the dissolution of the board to the Kgale project. Efforts to obtain official comment on the allegations and the current status of the development were unsuccessful at the time of publication.