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.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

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.

Explore

More

Open vote sinks Palai’s motion

Crowd to crown street dance ruler

Maine explores recovery, change in solo exhibition

Home-built hero ‘P7’ steals Desert Race spotlight

Mahlaya fills Masaseng’s ‘big boots’ at FUB

Showdown looms as BFL meets

OLEA Botswana officially launches

4 Reasons to Fall in Love with Novelas+

Appeal to public transport operators to exercise caution