Banks stay profitable, but expensive funding eats into Q1:2026 earnings

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.

Half the population still struggles to eat well

The latest official statistics show an improvement in food security but the country remains far from free of hunger with 47.2 percent of the population still experiencing moderate or severe food insecurity.

Statistics Botswana says the share of people who are food secure or only mildly food insecure rose to 52.8 percent in 2023/24, even as 28.1 percent of the population remained moderately food insecure and 19.1 percent faced severe food insecurity.

New official figures suggest Botswana is recovering from the sharp food insecurity spike seen in 2021/22, but nearly half the population still lives with some level of food insecurity.

The report says the latest findings were drawn from the Quarterly Multi-Topic Survey and the Food Insecurity Experience Scale (FIES), with data referring to the previous 12 months. It notes that food security has improved in the last two reporting years after worsening around the pandemic period.

The share of people who were food secure or mildly food insecure had fallen from 49.2 percent in 2018/19 to 46.7 percent in 2021/22, before recovering to 50.6 percent in 2022/23 and 52.8 percent in 2023/24.

Statistics Botswana says this ‘suggests that while there were declines in 2020/21 and 2021/22, food security improved in the last two years of the reporting period.’

Moderate food insecurity has remained relatively stable over time, though still at worrying levels. It rose from 28.6 percent in 2018/19 to 30.9 percent in 2020/21, dropped to 27.1 percent in 2021/22, increased again to 29.2 percent in 2022/23, and eased to 28.1 percent in 2023/24.

Severe food insecurity shows the clearest improvement in the latest data. After rising sharply to 26.2 percent in 2021/22, it fell to 20.2 percent in 2022/23 and then to 19.1 percent in 2023/24. The report says the 2021/22 spike could possibly have been linked to COVID-19 effects on household food security.

The official figures also show that hardship remains more severe outside urban centres. In rural areas, severe food insecurity stood at 25.1 percent in 2023/24, compared with 18.4 percent in urban villages and 11.5 percent in cities and towns.

Boko’s foreign fixers attract US scrutiny

An unusual cast of international businessmen and lobbyists has emerged as private deal makers around President Duma Boko, attracting scrutiny from the United States’ foreign influence transparency system and raising questions about the nature of their role.

Hardly two years since President Boko swept to power promising transparency, accountability and a new economic direction, a small but influential network of foreign businessmen and international intermediaries has quietly emerged around Botswana’s new administration.

At the centre of that network are three men whose backgrounds could hardly be more different. There is a Canadian-Israeli lobbyist with history of representing controversial political figures across the globe.

An Iranian-born entrepreneur who has been the subject of public allegations and red flag reports linking him to controversial crypto and investment circles, but no verified criminal conviction or official charge.

And a controversial South African mining and investment magnate whose name has repeatedly surfaced in discussions involving major projects in Botswana.

Individually, Ari Ben-Menashe, Farzam Kamalabadi and Zunaid Moti may appear unrelated. Together, however they reveal a striking pattern.

The first sign that Boko’s presidency would be different emerged long before he entered the State House. In July 2024, documents filed in the United States revealed that Boko had signed a lobbying agreement with Canadian firm Dickens and Madison headed by Ari Ben-Menashe. The agreement attracted attention because Ben-Menashe is no ordinary lobbyist. Over the years, he has cultivated a reputation as one of the world’s most colourful political operators, representing presidents, opposition leaders and governments across Africa, Asia and Latin America.

The assumption among many observers was that the relationship would end once the election was over. Instead, public filings suggest otherwise.

A January 2026 filling submitted under the United States Foreign Agents Registration Act stated that Dickens and Madison ‘ continue to work with Mr Duma Boko in support of his presidency.’ The filing did not elaborate. It did not specify the nature of the work. It did not specify who was paying, nor did it clarify whether the work was being undertaken on behalf of Boko personally, the ruling party or the Botswana government.

The website assigns a 50/100 score to the registration involving Dickens and Madson Canada Inc. and Duma Boko, stating:’The principal is a political party leader, which generally falls in the middle range of U.S. interest alignment. Without further details on the specific activities, a neutral score is appropriate.’ The assessment concludes that the registration ‘warrants scrutiny.’

If Ben- Menashe operates largely behind the scenes, Farzam Kamalabadi occupies a far more visible position. In 2025, Boko appointed Kamalabadi as Presidential Envoy on International Relations and Economic Development. The appointment placed Kamalabadi at the centre of Botswana’s effort to attract international investment at a time when the country faces one of its most challenging economic environments in decades.

Information published on the website tracking filings under the U.S. Foreign Agents Registration Act (FARA) states that Botswana currently has two active registrations. It describes the country’s direct efforts to influence U.S. policy or public opinion as ‘minimal’ compared to many other nations.

According to the website under a briefing titled ‘What Botswana is doing in Washington,’ the filings reveal that the Government of Botswana has engaged Fang Consulting LLC for strategic consulting, a company under Kamalabadi’s stable.

The website notes: ‘Botswana’s engagement with U.S. influence operations, as indicated by available FARA filings, is minimal, with only two active registrations.’ It adds that the filings demonstrate that ‘both governmental and individual political interests from Botswana have sought representation in Washington, albeit on a small scale compared to many other nations with active FARA registrations.’

Regarding the government’s engagement of Fang Consulting LLC, the website states that Botswana’s country baseline score is 60/100, but that ‘Strategic Consulting adjusts by -3, yielding a neutral signal.’ It describes this as a ‘heuristic’ assessment and notes that ‘no AI score [is] available.’

The website further observes that the strategic themes emerging from Botswana’s filings ‘appear to center on general strategic engagement and political lobbying rather than specific policy objectives.’

It says: ‘The government’s engagement with ‘strategic consulting’ points to image management or broad relationship building, while the lobbying by a political figure could encompass a range of objectives from advocating for a particular political stance to garnering support for electoral campaigns.’

However, updated filings submitted to the U.S. Department of Justice by Ari Ben-Menashe of Dickens and Madson Canada Inc. indicate that the firm’s activities on behalf of Duma Boko have not been directed at the United States.

The filing states:’DandM’s activities for Mr. Duma Boko have consisted of lobbying in Botswana, South Africa and the United Kingdom in support of his election as President of Botswana.’

It adds:’DandM continues to work with Mr. Duma Boko in support of his presidency.’

The filing emphasizes: ‘All activities DandM has engaged in on behalf of Mr. Duma Boko have occurred outside the United States, and none of those activities have been directed at the United States.’

The company further declared:’DandM has not prepared, disseminated or caused the dissemination of informational materials in the United States in connection with this foreign principal.’

On compensation, the filing says the firm did not receive any contributions, income or money from Boko during the reporting period. Instead, it reported that it applied retainer payments previously provided by Boko and previously disclosed to the Department of Justice. Those previously disclosed payments were reportedly USD 50,000 for a 12-month period, equivalent to approximately P675,000.

The disclosures suggest that Botswana’s government and political leadership have become part of the U.S. foreign influence transparency regime, where lobbying and consulting activities undertaken on behalf of foreign principals are publicly registered and monitored under FARA, even when the reported activities themselves are conducted outside the United States.

Then there is Zunaid Moti. The South African businessman has become a familiar figure in Botswana’s political conversation since Boko’s election victory. Government officials have acknowledged receiving proposals associated with Moti involving infrastructure projects. Media repots have linked him to efforts to secure opportunities in sectors ranging from construction to public-private partnerships. Critics, including former President Mokgweetsi Masisi have suggested that Moti’s proximity to the new administration deserves closer examination. Supporters dismiss such claims as politically motivated. Yet the persistence of Moti’s name in discussions involving major government projects continue to fuel speculation about the extent of his influence.

Boko’s Bonno headache: board fired, executives purged as Ramogapi scrambles for cover

Minister of Water and Human Settlements Onneetse Ramogapi is reportedly facing mounting pressure from President Duma Gideon Boko to deliver on the Bonno Housing Project or face removal from cabinet.

Reports reaching the Sunday Standard indicate that the President is especially furious because he had praised the project during its launch last year, hailing the Bonno Target 3,000 Kgale Housing Project as the first step towards a national goal of delivering 100,000 homes.

Behind the ostentatious fanfare, however, murmurs of discontent have amplified. Emerging reports suggest that Botswana Housing Corporation (BHC) executives were bullied into signing a Memorandum of Agreement (MoA) with the developer, Ongos Valley, just days before the official launch.

The MoA was reportedly signed without issuing an Expression of Interest (EOI) or giving other prospective bidders a chance. Furthermore, the project was launched without housing plans, enforceable contracts, or a completed due diligence report. Law firm Minchin and Kelly, alongside transactional advisors Grant Thornton, would later warn BHC to reconsider its contract with Ongos Valley. They highlighted the Namibian developer’s failure to disclose critical documentation during the due diligence process, which hampered confirmation of its financial soundness, technical operational capacity, and ethical standing.

To many, the writing was on the wall. In December 2025, barely six months after the launch, the much-touted partnership between BHC and Ongos Valley collapsed.

‘It was very unfortunate that the project was launched, but we had to terminate the contract as negotiations with the partner did not go well,’ then-acting CEO Pascaline Sefawe said at the time.

Internally, BHC employees breathed a collective sigh of relief. But the President was left embarrassed. In cabinet, Ramogapi began feeling the heat as Boko and fellow ministers grew increasingly impatient.

THE PURGE

Ramogapi has never minced his words: anyone standing in the way of the Kgale project would be removed. The threat of summary dismissal was real and repeatedly pronounced.

The casualties of the project began mounting rapidly. Permanent Secretary Bonolo Khumotaka was redeployed in July 2025, while Chief Executive Officer (CEO) Nkaelang Matenge was shown the door in October. Ramogapi wielded his axe again in February 2026, as acting Deputy CEO Steven Ofetotse and Property Development Manager Urban Ferguson were summarily dismissed for allegedly sabotaging the Kgale development.

The board ran helter-skelter trying to fill the resulting human capital gaps, leading to further internal chaos. A newly recruited female engineer had several run-ins with the board after employees raised complaints of harassment and bullying against her.

In another bizarre twist, the Director of Property Development-who reported for duty in February- abruptly resigned in April, before later attempting to rescind his decision. By that time, his resignation had been accepted and a replacement appointed. The situation escalated when the minister reportedly instructed the acting CEO to reinstate the former director. According to insiders, Ramogapi’s instructions could not be obeyed as terminating the replacement employee’s contract without lawful cause would expose BHC to immense financial liabilities. This set the stage for a direct, high stakes showdown between the board and Ramogapi.

THE BOARD DISSOLUTION

Tensions arose after the female engineer was instructed to ‘show cause’ why disciplinary action could not be taken against her for appointing two contractors to develop bulk services at Kgale without following due process.

The dispute highlighted a major shift from the project’s initial financial structure, in which the identified developers would recoup their investments through both bulk services and housing developments. Under the new arrangement, the contractors appointed by the female engineer were tasked exclusively with developing essential utilities infrastructure, including water supply, wastewater management, and stormwater drainage. BHC would be liable to pay a substantial upfront deposit, followed by monthly installments of up to P8 million over a 24-month period. Insiders revealed that total expenditures for development of bulk services at Kgale would ultimately exceed P200 million.

The board reportedly refused to validate the appointments; demanding clarity on whether management had fully assessed cash flow projections to ascertain BHC’s repayment capacity; collateral arrangements as well as sensitivity and stress-testing scenarios. While the board insisted this was necessary due diligence to prevent another disaster, Ramogapi viewed it as deliberate sabotage and unnecessary delay.

The tension reached boiling point during a heated meeting on June 1. Ramogapi reportedly dressed down the BHC board, accusing them of failing to deliver on the corporation’s mandate. Three days later, on June 4, Ramogapi officially dissolved the board in accordance with Section 6(3) of the BHC Act. The minister has since assured stakeholders that the process of constituting a new board is already underway.

Letshego’s African retreat driven by P520 million losses

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.

Axed BHC board, Exco accused of failing to deliver Kgale Project despite investor interest

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.

Bo.Plug hits the streets!

Bo.Plug, Botswana’s newest advertising enterprise has officially launched, bringing a bold promise to revolutionise both informal trade and advertising in the country through professionally built workstations that double as advertising platforms.

On 25th of May 2026, the enterprise kicked off its landmark Re A Go Plug’a! activation where they partnered with 7 informal traders in the CBD and Main Mall to use the very first set of workstations. ‘Informal traders are the backbone of the everyday economy. They serve thousands of people daily providing affordable essentials, supporting families, and keeping communities moving. Yet most of them trade from improvised and unstable setups,’ said Bakang Sethole, Bo.Plug Business Developer, on the reasoning behind this venture. ‘These makeshift setups don’t reflect the scale of the traders’ effort or the economic value they create.’

With a vision to empower the informal sector, Bo.Plug developed a local solution with national impact through the design, manufacture, and maintenance of durable, professionally-designed workstations that give traders the structure and support they deserve, while creating shared value for brands and cities.

The message is simple; if you hustle, you deserve a proper workstation. Each table is locally fabricated, giving traders a professional platform while creating a circular business model that benefits brands, traders, and Gaborone city alike.

The Re A Go Plug’a! activation is expected to continue into 4 other areas of Gaborone’s highest-traffic zones, engaging a further 8 informal traders. ‘Every trader who signs up is proof that this product is needed. The activation is more than just a deployment, it’s a live demonstration of market demand, and the beginning of a movement to raise the standard for every informal trader in the country,’ concluded Sethole.

Bo.Plug not only acts as a product provider, but as a long-term partner in strengthening Botswana’s informal economy, innovating marketing efforts for corporates and local businesses alike, and creating cleaner, safer environments for Batswana to live and work in.

Bo.Plug is a Botswana-based advertising enterprise that designs, manufactures, and maintains durable workstations for informal traders. By combining practical design with social purpose, Bo.Plug creates a circular model where community empowerment, responsible branding, and urban improvement work hand in hand designed, built, and maintained right here in Botswana.

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.

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.

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.