Credit growth to businesses tumbles

According to figures released by the Bank of Botswana last week, credit growth to business decreased to 14 .7 percent (P14.9 billion) from 16.1 percent in January while households credit growth maintained an upward trend rising to 30.7 percent from 27.7 percent respectively.

Credit growth to the business sector had decreased to 16.1 percent year on year in January from 17.1 percent year on year in December 2012 as a result of lower credit growth for all business sectors, except for mining.This week, analysts said they are concerned about the slowdown in credit extension to the business sector as an increase in credit growth to the business sector usually reflects buoyant business activities and vice versa.