Business credit growth slumps

Business credit growth slumps
Business credit growth slumps

Local businesses are not taking up commercial bank loans, despite the record low interest rates available, with annual credit growth for May falling to about two percent in May from 2.8 percent in April, the latest Bank of Botswana statistics show.

Businesses are either unable to afford loans due to the COVID-19 crisis or prefer to finance their requirements from their own reserves, research by the central bank and other analysts has shown.

Credit growth, or the annualised rate of increase in loans, also slipped amongst households in May, being measured at 11.5% from 14.5% in April.

Editor's Comment
Gov’t must rectify recognition of Khama as Kgosi

While it is widely acknowledged that Khama holds the title of Kgosi, the government’s failure to properly gazette his recognition has raised serious concerns about adherence to legal procedures and the credibility of traditional leadership. (See a story elsewhere in this newspaper.) Recent court documents by the Minister for Local Government and Rural Development, Kgotla Autlwetse, shed light on the intricacies of Khama’s recognition process....

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