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Absa eyes Corporate Banking as lending come under pressure

Strategising: Absa Botswana MD, Keabetswe Pheko-Moshagane
Strategising: Absa Botswana MD, Keabetswe Pheko-Moshagane

The country’s second largest commercial bank by book value is eyeing Corporate Banking for the safety of its loan book, as Retail Banking which is dominated by credit to households, has been under severe pressure from macroeconomic headwinds.

In the year ended December 2025, Absa Bank Botswana expected credit losses reached P110 million, rising by 22% from last year’s P89 million. The significant rise was anchored on projections that households will not be able to afford monthly loan commitments as debt levels coupled with inflationary pressures keep the household purse under pressure.

In its 2025 integrated report, the bank hinted on a strategic shift to shareholders, citing that while Retail Banking has been the traditional anchor in the local banking industry, it was also fraught with growing risk.

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