Firms optimistic about business outlook through mid-2027

Businesses in Botswana are expressing cautious optimism about the trading environment through June 2027, buoyed by government initiatives aimed at economic recovery and business transformation, according to a recent survey from the Bank of Botswana.

While the operating landscape remains challenging, companies anticipate more favorable conditions from the fourth quarter of 2026 into the first half of 2027. The quarterly Business Expectations Survey (BES) gathered insights from local businesses about current economic realities and future prospects.

The survey revealed that during the second and third quarters of 2026, many Botswana-based firms were generally pessimistic about the economy, expecting a business climate less conducive to growth. Key concerns included high borrowing costs, constrained government spending, and the country’s weakened fiscal position. Additionally, changes to exchange rate parameters implemented in July 2025 raised costs for imported raw materials, further straining operations.

Sectors such as Construction, Real Estate; Finance, Professional and Administrative Services; Retail, Accommodation, Transport, and Communication; and Manufacturing voiced particular concern during the second quarter of 2026. This cautious outlook extended into the third quarter for Retail, Accommodation, Transport and Communication, Construction and Real Estate, and Agriculture. Nevertheless, sentiment improved looking ahead to the 12 months ending June 2027, fueled in part by expectations that projects under the National Development Plan 12 (NDP 12) and the Botswana Economic Transformation Programme (BETP) will be successfully executed.

The Ministry of Finance emphasized that NDP 12 aims to enhance national service delivery to 75 percent by 2036 through innovative implementation strategies and a rigorous monitoring and evaluation framework. The plan focuses on bolstering coordination and accountability within the public sector by improving implementation mechanisms, data management, and institutionalizing the national monitoring and evaluation system.

Officials stressed the government’s commitment to upgrading digital systems to provide timely, reliable data for decision-making, ensuring that issues are addressed promptly and underperformance is tackled decisively. This, the Ministry said, will reinforce confidence in development planning by aligning intent, resources, and delivery throughout the plan period.

BETP, a key component of the National Development Plan, is designed to accelerate economic transformation through focused project delivery. The program has identified 186 projects and initiatives, with the potential to attract P514 billion in investment, create 512,000 jobs, and steer Botswana toward a high-income, export-driven, and digitally advanced economy by 2036.

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