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Gov’t fiscal crunch squeezes business confidence

Friday, August 29, 2025 | 1020 Views |

Slowing down: Government’s fiscal challenges are the biggest concern facing local firms PIC: MORERI SEJAKGOMO

Business confidence is being hit hard by worries over slow government spending, with most firms expecting a tight operating environment through to the first half of next year, a Bank of Botswana survey has revealed.

The Business Expectations Survey (BES) for the second quarter of this found that long-term expectations of the business environment are skewed to the downside, with the main worries fuelled by the government's limping revenues and spending.

The researchers found that businesses were wary of market conditions following a series of government announcements to cut spending and halt an array of planned and budgeted expenditure.

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