Mmegi

Household debt to banks tops P55bn

Targetted: 
Retail customers represent low cost of funding and high interest earnings for commercial banks 
PIC: MORERI 
SEJAKGOMO
Targetted: Retail customers represent low cost of funding and high interest earnings for commercial banks PIC: MORERI SEJAKGOMO

Households owed the country’s commercial banks P55.7 billion in December, an increase of P2.4 billion from the prior year, as declining interest rates helped increase appetite for debt.

Household borrowing, the main revenue driver for commercial banks and a bellwether of economic activity, has been growing steadily, supported by the Bank of Botswana (BoB) cuts in interest rates.

Central bank figures contained in the January Botswana Economic Financial Statistics (BEFS) show that household borrowing from the country’s commercial banks stood at P55.7 billion at the end of 2024, within which mortgages accounted for P14.8 billion.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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