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
Salakae-DCEC public war serves neither justice nor Botswana

When institutions trade accusations with suspects, citizens begin choosing sides before the first witness enters the box or testifies.Salakae and six others are due to appear in court over allegations linked to the Ghanzi–New Xade road contract.The State alleges that the Member of Parliament for Ghanzi received cash, a Toyota Fortuner and bush-clearing services in return for influencing the award of the contract. However, Salakae denies...

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