Category: Sunday Standard

Stanbic Bank Botswana kept earnings largely unchanged in 2025, as strong growth in trading and fee income offset a sharp squeeze on lending margins in a year defined by tight liquidity and elevated funding costs.

Profit before tax edged up to P951.7 million from P949.7 million, while profit after tax rose slightly to P709.7 million. Stability at the headline level masked significant shifts in the bank’s income mix.

Net interest income fell 21.7 percent to P1.07 billion, as interest expenses surged 86.1 percent to P957.2 million, reflecting intense competition for deposits. The net interest margin narrowed to 3.7 percent from 4.9 percent, underscoring the pressure on traditional lending.

Non-interest income provided the offset. Revenue from trading, fees and commissions rose 62.5 percent to P941.6 million, driven by stronger performance in Global Markets, higher trade volumes and increased foreign exchange activity.

The shift was partly supported by changes in currency market dynamics after the Bank of Botswana widened the pula trading band in July 2025, boosting interbank foreign exchange activity and reducing reliance on the central bank.

Balance sheet growth remained subdued. Total loans and advances declined 9 percent to P21.3 billion, while customer deposits fell 2.1 percent to P22.7 billion, reflecting a more cautious approach to lending in a high-cost funding environment.

Asset quality showed some strain, with credit impairment charges rising to P84.6 million, though cost discipline improved. The cost-to-income ratio fell to 48.6 percent, and operating cash flow strengthened significantly.

The results highlight a shift in earnings drivers, with market activity increasingly compensating for pressure on core lending in a constrained liquidity environment.

Energy minister, Bogolo Kenewendo this week told parliament that high connection costs are limiting the pace of rural electrification, even as government maintains a longer-term commitment to expanding access.

Kenewendo said it remains economically unviable in some areas to extend electricity infrastructure, particularly to ploughing fields and sparsely populated zones where demand is low and distances are significant.

The minister’s response to MP Taolo Lucas underscores a structural challenge facing the country’s electrification drive: balancing universal access ambitions with the high capital costs of grid expansion. Officials indicated that, for now, reducing connection costs in such areas is not feasible, pointing instead to a phased approach.

Kenewendo said that the government will continue to extend electricity access progressively, while encouraging those with financial capacity to co-invest in connections where possible. The model reflects a shift toward shared funding mechanisms in cases where public investment alone may not be sufficient to justify rollout.

In parallel, the government is also focusing on institutional capacity building. ‘A new electricity-related training and certification programme has received approval from the Human Resource Development Council, with curriculum development at an advanced stage. The course is expected to combine theoretical and practical components, aimed at strengthening technical skills in the energy sector’, Kenewendo said.

Meanwhile the dual approach, targeted infrastructure expansion alongside skills development, highlights the government’s attempt to address both supply-side limitations and workforce readiness.

While electrification remains a policy priority, the update signals that near-term progress will likely be uneven, shaped by cost realities and the need for alternative financing models in low-density areas.

Only 10% of Botswana workers say they are thriving in life, while workplace engagement remains stagnant at 20%, according to the State of the Global Workplace: 2026 Report released in April 2026 by Gallup.The findings, based on data collected between January and December 2025, paint a mixed picture of working life in Botswana, where low life satisfaction contrasts with relatively moderate levels of workplace stress compared to regional averages.

According to the report, employee engagement in Botswana stands at 20%, matching the global average and slightly above the Sub-Saharan Africa average of 19%. However, this figure reflects a five-point decline from the previous three-year rolling average, suggesting a downward trend in workforce motivation.

The report states: ‘Employee engagement in Botswana reflects stagnation, with no significant improvement over global benchmarks and a noticeable decline from previous averages.’

Despite lower stress levels compared to regional peers, broader wellbeing indicators remain weak. Only 10% of employees in Botswana are thriving in their overall lives, significantly below the Sub-Saharan Africa average of 18% and the global average of 34%. The report notes: ‘Life evaluation in Botswana remains among the lowest observed globally, indicating persistent challenges in overall wellbeing and life satisfaction among employees.’

On a more positive note, 26% of employees reported experiencing high stress the previous day, well below the regional average of 46% and the global average of 40%. Daily emotional strain also appears comparatively moderate, with 16% reporting anger, 22% reporting sadness, and 24% reporting loneliness. However, loneliness remains slightly above the global average of 22%.

Job market confidence is also subdued. Only 42% of employees believe it is a good time to find a job in their local area, compared to 50% regionally and 52% globally. This reflects a two-point decline from the previous rolling average, suggesting weakening labour optimism.

The report highlights: ‘Perceptions of job availability in Botswana are lower than both regional and global averages, signalling reduced confidence in local labour market conditions.’

While stress and anger indicators show slight improvements over time, the broader picture remains concerning, with stagnating engagement and low life evaluation suggesting deeper structural issues in workplace satisfaction and economic confidence.

The report suggests that the combination of low thriving rates and declining engagement may point to a disconnect between employment and quality of life, even as Botswana continues to outperform parts of the region on day-to-day stress indicators.

Overall, the 2026 findings also suggest a labour market that is stable in participation but struggling to translate employment into meaningful wellbeing gains for many workers.

Citizen Entrepreneurial Development Agency (CEDA) ramped up funding to small businesses while tightening collections, as government leans on the institution to drive citizen-led growth amid fiscal pressure.

Figures tabled in Parliament show the agency invested P696 million in 1,716 businesses by the end of the third quarter of the 2025/2026 financial year, creating 3,109 jobs and sustaining a further 1,569.

On the revenue side, CEDA collected P814 million in loan repayments and generated P207 million in income, reflecting an increased focus on recoveries as liquidity constraints weigh on the public purse.

The agency continues to position itself as a development finance vehicle, offering loans ranging from P500 for micro enterprises to as much as P50 million for large-scale projects, with subsidised interest rates for priority sectors such as manufacturing, agriculture and tourism.

A five-year strategy, branded ‘Katlego ya Mogwebi,’ is now guiding operations, with emphasis on sustainability and SME growth. Key interventions include restructuring distressed firms, particularly in manufacturing, and rolling out a ’60/40′ funding model that channels capital into high-impact projects while reserving a portion for inclusion-focused ventures.

CEDA is also diversifying its approach through digitisation, equity participation and sector-specific products, including financing for horticulture, poultry and livestock under the A-Di-Tsale programme.

However, officials acknowledge that government liquidity challenges continue to affect the agency’s portfolio performance, prompting a renewed push to improve collections and reduce non-performing loans.

The data underscores CEDA’s dual role as both a catalyst for enterprise development and a balance-sheet-sensitive lender navigating tightening fiscal conditions.

Last week, a striking political paradox unfolded when a senior government minister publicly praised a youth protest that was, in essence, an indictment of his own administration.

‘Always with you, never above you! I’m proud of the Young Turks!! Moono-Wa-Baithuti and Botswana National Front Youth League Official for rejecting agent provocateurs, and leading a peaceful protest earlier today,’ minister of health Stephen Modise wrote, language that suggested alignment with the very voices calling out systemic shortcomings under his government’s watch.

Despite Modise’s attempt to politicise and frame the protest as a disciplined, party-led action by the Botswana National Front Youth League, the demonstration appeared far broader in scope. Students from across the political spectrum took part, underscoring that the mobilisation was not anchored to any single party structure.

Placards carried by protesters pointed to a deeper, more systemic discontent, highlighting widening frustration among Botswana’s youth over governance failures and a widening gap between policy promises and lived reality, rather than allegiance to partisan causes.

Yet in a move that blurred the lines between accountability and political messaging, Stephen Modise commended the BNF protesters, praising their discipline and peaceful conduct. The contradiction is difficult to ignore. The youth were not marching in support of the state but were demonstrating against its failures. Their protest was a critique of governance outcomes, of opportunities not delivered, and reforms that have yet to materialise at scale. Commentators say for a sitting minister to applaud that moment is to implicitly acknowledge the legitimacy of the discontent, even as he remains part of the machinery being challenged.

In many political contexts, such a protest would trigger defensiveness or rebuttal. But in Gaborone, it elicited endorsement. ‘The strategy by the minister appears calibrated inorder to absorb criticism rather than confront it,’ says a political commentator on condition of anonymity, adding that ‘he was trying to position leadership as empathetic rather than embattled. By validating the protest, the minister amplifies its core message that the government is falling short.’

Botswana’s reputation for stability has long rested on responsive governance and prudent economic management. Yet the persistence of youth unemployment and underemployment is eroding that narrative. The student protest in Gaborone is less an isolated event than a visible manifestation of a deeper structural strain.

The Botswana Examinations Council (BEC) has released the 2025 Botswana General Certificate of Secondary Education (BGCSE) results, presenting a portrait of an education system that is managing to carry most students across the finish line, while struggling to produce high-performing candidates.

At first glance, the data points to stability. ‘Among all the Grades awarded this year, 95.65% were Grade G or Better,’ the council said, suggesting that the overwhelming majority of candidates are meeting the minimum threshold. Similarly, ‘the proportion of Grades at E or Better is 78.68%,’ indicating that most students are achieving what policymakers would consider functional pass levels. But the distribution thins sharply at the top.

Only ‘37.07%’ of candidates achieved a C or better, and a mere ‘3.01%’ reached Grade A or better, a figure that underscores a narrow pipeline of top academic performers. In systems analysis terms, Botswana’s secondary education outcomes appear bottom-heavy as they are strong at ensuring baseline competency, but weak in cultivating excellence.

The structural changes to the examination system further complicate interpretation. Education officials have urged caution in interpreting the figures. ‘Because of the significant changes in the assessment structure, comparison of performance with previous cohorts is not relevant,’ the council noted, pointing to the rollout of Botswana Senior Secondary Education subjects, which now make up more than half of the 46 subjects offered. The shift marks a transition year, complicating direct historical comparisons.

Even so, elite performance remains exceptionally rare. The criteria for distinction, at least six A* grades, was met by just ‘eleven (11)’ candidates nationwide, drawn from seven centres. The top-performing student recorded ‘7A*, 2A, and 2C from a total of 11 syllabuses*,’ a strong individual outcome that contrasts sharply with the broader cohort’s distribution.

From a participation standpoint, the candidate pool shrank slightly. A total of 35,366 candidates sat for the exams, down 4.2% from 2024. Female candidates continued to dominate, accounting for 59.18% of entries, compared with 40.82% male. a persistent gender imbalance that may have longer-term labour market implications.

Education experts say the results are best described as mixed, leaning structurally weak at the top end. On the positive side, Botswana’s education system is achieving mass inclusion and minimum competency. A 95.65% rate at Grade G or better suggests limited outright failure, which is critical for social stability and basic workforce readiness.

However, the low proportion of high grades signals a deeper systemic issue. With only 3.01% of candidates attaining A-level performance, the system is producing too few students equipped for competitive tertiary education pathways, particularly in high-skill fields such as STEM, finance, and technology.

World Relays local organising committee has received a major boost ahead of a historic global event. Stanbic Bank Botswana has pledged P5 million to support the Debswana World Athletics Relays Gaborone 2026. It is the first time the country and Africa will host the competition, and the funding signals strong backing from the private sector.

The financial support comes just weeks before the event, which is scheduled for May 2-3 at the National Stadium in Gaborone. The relays will attract top athletes from around the world, putting Botswana in the international spotlight.

Minister of Sports and Arts, Jacob Kelebeng, said the event is a defining moment for the country. He noted that hosting a global athletics competition requires strong partnerships, proper planning and serious investment. He said the support from Stanbic shows confidence in Botswana’s ability to deliver a successful event.

‘This is Botswana’s time to shine,’ Kelebeng said. ‘We all have a role to play in making this event a success.’

Stanbic Bank Botswana says its P5 million contribution is about more than just sport. The bank believes events like the World Athletics Relays bring real benefits to the country. These include job creation, tourism growth and increased global visibility.

Chief Executive Chose Modise said sport has the power to unite people and create opportunities. He added that the bank is proud to be part of a historic moment for Botswana.

‘Sport brings people together and builds national pride,’ said Modise. ‘We want to help deliver an event that the country will be proud of for years.’

The World Athletics Relays is expected to draw athletes, officials and fans from different parts of the world. Hotels, transport services and local businesses are likely to benefit from the increased activity. The event also gives local athletes a rare chance to compete at home against some of the best in the world.

Stanbic’s involvement in sport is not new. The bank has supported several sporting events and teams over the years. These include the Nomads Nationals cricket tournament, Township Rollers Football Club and the Gaborone Marathon. It is also the sponsor of the Stanbic Bank Gaborone Golf Club.

This latest investment is seen as a continuation of that support. The bank says it is committed to helping develop local talent and growing sport in communities across the country.

Head of Brand and Marketing Stephanie Sandridge said Botswana has always produced strong athletes. She believes hosting the relays will inspire young people and open new opportunities.

‘Now the world will come to us,’ she said. ‘This is a big moment for Botswana, and we are proud to be part of it.’

The local organising committee is working with government and international partners to prepare for the event. Preparations include upgrading facilities, planning logistics and ensuring security for athletes and visitors.

The National Stadium is expected to be the centre of activity during the two-day competition. Fans will have the chance to watch high-level relay races, including Olympic-style events that test speed, teamwork and precision.

For Botswana, the relays are more than just a sporting event. They are a chance to show the country’s ability to host world-class competitions. It is also an opportunity to build a lasting legacy in sport and infrastructure.

As the countdown begins, excitement is building among sports fans and athletes. With strong backing from both government and the private sector, expectations are high.

Stanbic Bank Botswana’s P5 million pledge has set the tone. Now all eyes are on Gaborone as it prepares to welcome the world.

Government’s flagship labour-based relief programme, Ipelegeng, set to transform from a purely welfare-based intervention to promoting skills development appears to have undergone a change in name only. A document seen by Sunday Standard shows that key conditions among them wages and working hours have remain unchanged. This has raised questions about whether the reform is more cosmetic than substantive.

In a circular dated March 26, 2026, Acting Permanent Secretary in the Ministry of Local Government and Traditional Affairs, directed all council secretaries, town clerks and tribal administrators to submit project proposals for implementation under the revamped programme for the 2026/2027 financial year.

The directive follows earlier communications dated March 11, 2026, on the ministry’s development budget and December 15, 2025, which approved the transformation of Ipelegeng into Ikageng.

Despite the rebranding, core features of the programme remain intact. The circular states that the programme allowance will remain at P817.00 for labourers and P901.00 for supervisors, while working hours will continue at six hours per day.

‘The current number of beneficiaries (quota) will still be observed as employment targets,’ reads the Savingram. It added that districts must focus on creating sustainable opportunities within those limits.

The ministry has, however, introduced structural adjustments, including the scrapping of monthly worker rotation. Participants will now remain engaged for the duration of specific projects which is a shift the ministry says is meant to improve efficiency and accountability.

The programme’s transformation was first revealed by Minister of Local Government and Traditional Affairs, Ketlhalefile Motshegwa, who told Parliament in October 2025 that reforms were already underway. ‘The transformation of Ipelegeng programme from a purely welfare-based intervention to promoting skills development is in full swing,’ said Motshegwa.

He emphasised that the restructured programme aims to move beyond short-term relief. ‘The Ipelegeng programme remains one of the most recognisable pillars of our social protection system, providing immediate relief and income support to vulnerable citizens across the country. To this end, we are undertaking a comprehensive transformation of the programme for it to promote productivity and pathways to sustainable livelihoods,’ he said while presenting the Social Protection Chapter of the draft National Development Plan 12.

‘These reforms are about restoring dignity and enhancing self-reliance,’ he said, adding that the goal is to ensure public works contribute meaningfully to both social protection and national development. It is understood that as the Ikageng programme rolls out, the unchanged wages and conditions are likely to fuel debate over whether the reform represents genuine transformation or simply a change in name.

Accessing basic public services such as medical care and police assistance is becoming increasingly difficult for citizens in Botswana, a new Afrobarometer report has revealed.

The study, titled ‘Inadequate access and corruption mark public service delivery for many Africans,’ paints a troubling picture of growing barriers to essential services with Botswana showing notable declines in key areas.

According to the survey, 44 percent of Batswana who sought medical care said it was difficult to obtain while half (50 percent) reported challenges in accessing police assistance.

‘Only about half of those who sought services say it was easy to obtain medical care or police assistance,’ the report notes.

More worrying for Botswana is the direction of change. The report indicates that difficulty in accessing medical care has worsened over time, while challenges in obtaining police assistance have also increased significantly.

Between 2014/2015 and 2024/2025, Botswana recorded a 12 percentage point increase in difficulty accessing medical care and a 16-point rise in challenges in securing police assistance signalling a clear deterioration in service delivery.

This aligns with the broader continental pattern, where Afrobarometer found that ‘obtaining public services appears to have become more difficult’ over the past decade.

Sixty six percent of respondents reported visiting a public health facility in the past year, while 31 percent sought police assistance which is among the highest rates on the continent. ‘Health, security, and other public services dominate citizens’ agenda for needed government action,’ the report states.

The report further highlights that poorer citizens are disproportionately affected, with economically disadvantaged groups significantly more likely to report difficulties in accessing both health care and police services.

Beyond access challenges, corruption continues to plague service delivery. Across Africa, 36 percent of respondents who sought police assistance said they had to pay a bribe, while 22 percent reported paying for medical care.

The survey shows that difficulty in accessing police assistance has increased by 16 percentage points over the past decade while access to medical care worsened by 12 points. Only identity document services showed improvement becoming easier to access by 7 percentage points.

Despite these access challenges, Botswana stands out as one of Africa’s least corrupt countries when it comes to public service delivery.

The report states: ‘We see the best performance on this critical indicator in Botswana, Cabo Verde, and Seychelles-all with 10% or less on all four types of services.’

In Botswana, only 10 percent of citizens reported paying a bribe to avoid problems with police, while just 5 percent paid bribes for police assistance or identity documents, and a mere 2 percent for medical care.

This places Botswana among the continent’s top performers, especially when compared to countries like Liberia, where 74 percent of respondents reported paying bribes to police.

Botswana’s economy shrank sharply in the fourth quarter of 2025, weighed down by a steep contraction in the mining sector, even as agriculture and several non-mining industries showed resilience.

Latest figures indicate that real Gross Domestic Product (GDP) contracted by 5.4 percent during the quarter under review, a deeper decline compared to the 1.9 percent contraction recorded in the same period in 2024. On a quarter-to-quarter basis, the economy declined even more sharply by 11.4 percent, underscoring mounting economic pressures.

The downturn was largely driven by significant declines in key sectors, particularly Mining and Quarrying, which plummeted by 47.0 percent. The sector’s collapse was primarily attributed to a 54.6 percent drop in diamond production, alongside declines in coal and soda ash output, which fell by 13.3 percent and 8.2 percent, respectively.

Other sectors also recorded contractions, with Construction shrinking by 2.3 percent, while Water and Electricity declined by 1.3 percent, reflecting reduced domestic electricity generation and imports.

Despite the overall economic downturn, agriculture emerged as a bright spot in the economy with the Agriculture, Forestry and Fishing sector expanding by 4.2 percent which is a significant turnaround from the 1.9 percent contraction recorded a year earlier. Growth in the sector was largely driven by a 5.7 percent increase in livestock farming, supported by a dramatic 193.2 percent surge in cattle deliveries to the Botswana Meat Commission.

In terms of sectoral contribution to GDP, Public Administration and Defence remained the largest contributor at 18.2 percent, followed by Wholesale and Retail Trade at 13.2 percent, Construction at 12.1 percent, and Mining and Quarrying at 6.8 percent, reflecting the latter’s diminished role during the quarter.

The Wholesale and Retail Trade sector grew modestly by 4.1 percent, although this represented a slowdown from 7.8 percent growth in the previous year. Similarly, Accommodation and Food Services posted a slight improvement, growing by 3.8 percent, supported by gains in both accommodation and food services activities.

In the utilities sector, electricity output declined by 5.0 percent, reversing a strong 78.1 percent growth recorded a year earlier. This was largely due to reductions in both domestic electricity generation (down 11.6 percent) and imports (down 12.1 percent). In contrast, the water subsector grew by 5.8 percent, offering a partial offset.