Credit growth defies liquidity crunch

Figures shared by the Bank of Botswana indicate that annual credit growth, or the increase in the total amount of loans and given out by banks, was measured at four percent in January, rising to 10.3% in June before moderating to 7.3% in August. By comparison, annual credit growth was 9.8% in January 2024, before sinking to three percent in July 2024.

Analysts expected banks to adopt a more cautious outlook to credit extension looking at the tightness of liquidity in the market and the continuing contraction in the economy.