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Fiscal constraints worsen business confidence

Friday, May 29, 2026 | 70 Views |

Balancing act: Technocrats at the Finance ministry are battling to steady the fiscal ship in an environment of lower revenues

Local firms are increasingly pessimistic about business operating conditions in the country, largely as a result of restrained government spending and issues related to exchange and interest rates, a survey by the Bank of Botswana indicates.

The central bank’s latest Business Expectations Survey (BES) covering the period between the first quarter of the year, the second quarter and through to March 2027, found that the difficult, broader economic conditions were weighing down on local firms.

The survey covered 100 firms across various sectors of the economy and attained a 54% response rate, up from 50% in the December 2025 edition of the BES.

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