FNBB signals SMME stress as lending slows :: Mmegi Online

The country’s largest commercial bank by loan book and assets, First National Bank Botswana (FNBB), has reported a slowdown in uptake of its purchase order financing product for small and medium enterprises, pointing to mounting strain in a sector heavily reliant on government contracts.

In its latest report, the bank disclosed that there was a growing strain within Botswana’s small and medium enterprise (SME) sector, with only P84 million drawn from an approved P200 million purchase order (PO) financing facility at year-end, underscoring weakening activity for local enterprises amidst growing economic headwinds.

The bank attributed the low uptake to a slow economic activity marked by decreased government spending that had spillover effects to other microelements of the economy, such as businesses and households.

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FNBB

FNBB signals SMME stress as lending slows

The country’s largest commercial bank by loan book and assets, First National Bank Botswana (FNBB), has reported a slowdown in uptake of its purchase order financing product for small and medium enterprises, pointing to mounting strain in a sector heavily reliant on government contracts.

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