The figure is one that many consumers would have thought would take years to achieve, looking at the fact that just two years ago, inflation touched historic highs at 14.6%. While inflation has fallen by over 80% between August 2022 and November 2024, the thebe value of what consumers can buy has not improved and most Batswana complain that they are less and less able to afford their needs. Inflation is the general increase in the prices of goods and services, and in a healthy economy, it is necessary to ensure sustainable and growing businesses. In fact, the Bank of Botswana has an objective range of inflation of three to six percent, which it considers appropriate for the healthy growth of the economy.
The challenge, however, is when general incomes in the economy are not growing at similar levels. Mathematically, inflation has come down, but in reality, prices continue to rise but only at a slower pace than the historic highs of two years ago. Stagnant wage growth and rising unemployment mean that while the inflation numbers this year appear great, the effect is not felt by the majority of Batswana. According to figures from Statistics Botswana, between the third quarter of 2023 and the first quarter of 2024, estimated average cash earning in the formal sector fell by an average of 7.1 percent. Earnings in sectors such as retail, manufacturing as well as accommodation and food services, were at the bottom of the ladder, together with other elementary occupations and were also generally down between the two periods.
