Borrowing costs emerge as firms’ biggest worry

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.