TransUnion sees consumers' bill pressures rising
Lewanika Timothy | Monday October 13, 2025 06:56
One in three Batswana have expressed pessimism over the ability to meet their financial obligations, and are now turning to “side gigs” to make ends meet.
A report by leading credit bureau TransUnion, covering the second quarter of this year, showed that local consumers were reeling under the weight of a slowing economy and facing steeper costs of living.
A higher number of consumers expect their finances to deteriorate in the short term.
The report, which surveyed local consumers on their personal finances and spending patterns, showed that the rising cost of living, coupled with a lack of access to tailormade credit solutions, is sinking consumers into debt and financial misery.
“In Q2 2025, 34% of respondents expected to miss at least one bill or loan payment. “Amongst them, 42% planned to take on gig work, 38% planned to make partial payments, 25% intended to use savings, and 22% said they would borrow from friends or family,” the Consumer Pulse Report said.
The TransUnion’s quarterly survey explores how consumers’ personal finances have shifted and what changes they expect in the future. The study measures shifting consumer attitudes and behaviours based on the dynamics of income, debt and identity theft. The analyses and insights give consumers a voice and inform businesses’ decision-making as they seek to create economic opportunities for consumers.
The report found that 25% of respondents said someone in their household had lost a job in the past three months, representing a nine percent increase from the same period last year.
A further 16% reported that a household business had closed or lost orders, while 15% experienced wage or salary cuts. On the upside, consumers were showing signs of resilience to these pressures, with even the broader economy experiencing marginal decline.
Income recovery levels, however, remained subdued. The report found that only 18% of consumers received a salary increase, a 10-point drop from Q2 2024, suggesting that whilst inflationary pressures have eased, wage growth has not kept pace with the cost of living.
“The data reflects households’ grappling with limited income mobility even as they attempt to rebuild savings and debt positions,” the report shared.
The findings signal tightening pressure on Botswana’s financial sector, with potential ripple effects across the wider economy. As more households expect to miss bill or loan payments, banks and microlenders face a likely uptick in non-performing loans, particularly in unsecured personal lending and retail credit.
At a macro level, the data suggests a weakening of consumer-driven growth, as disposable income shrinks and repayment capacity erodes. Private consumption, which is responsible for a chunk of the local GDP, faces pressure of decelerating, dampening retail sales.