Credit dries up as bank deposits shrink

Household credit has been sluggish since late last year, with other economic agents like businesses in both the services and manufacturing industries taking fewer loans, whilst some with existing loans continue to default.

Economic data released by the central bank in the Botswana Economic Financial statistics datasets show that from October last year all the way through February this year, credit has been on a simultaneous downturn with economic activity, with rising interest rates turning enterprises and individuals away from borrowing.