Mmegi

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.

Editor's Comment
Public servants deserve better than union infighting

‘The strongest bond of human sympathy outside the family relation should be one uniting working people of all nations and tongues and kindreds’.- Abraham LincolnUntil then, the Council’s operations remain suspended, delaying critical decisions affecting thousands of public sector employees.The current standoff is between the Manual Workers Union on one side and the Six Cooperating Trade Unions, namely BONU, BOPEU, BTU, BDU, BOSETU and...

Have a Story? Send Us a tip
arrow up