Mmegi

Borrowing costs emerge as firms’ biggest worry

Finger on the pulse: The BoB uses business expectations to guide its monetary policy and interventions PIC MORERI SEJAKGOMO
Finger on the pulse: The BoB uses business expectations to guide its monetary policy and interventions PIC MORERI SEJAKGOMO

Rising interest rates across different capital markets have emerged as a major concern for local firms, with businesses warning that higher borrowing costs and tighter credit conditions could constrain growth and further weaken economic activity.

The latest Business Expectations Survey by the Bank of Botswana, which sampled more than 100 firms from 13 sectors of the economy, found that firms highlighted the increasing cost of capital and tightening collateral requirements as a major factor that will chokehold growth and dampen economic activity.

Firms in capital intensive industries such as construction and quarrying, retail, transport and communication were found to be pessimistic about business conditions in the short to medium term horizon.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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