Mmegi

More lending rates to rise on liquidity squeeze

Friday, May 16, 2025 | 1770 Views |

On alert: Dekop chairs the FSC PIC: PHATSIMO KAPENG

More banks are set to increase the interest rates they charge on loans, while others intend to narrow their lending to clients with the highest returns, as a long-running liquidity crisis in the banking sector tightens its grip.

This week, BBS Bank and Access Bank joined Absa Bank Botswana and Stanbic Bank Botswana in increasing their prime lending rates, the first time commercial banks have uncoupled from the Bank of Botswana’s interest rate guidance since the freedom to do so was granted in April 2023.

The increases in the lending rates range from 75 basis points to 115 basis points, as the cash-poor government’s higher appetite for debt sucks up liquidity in the local capital market.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

Bank of Botswana

Absa, UNICEF highlight private sector role in social development

Laone Choeunyane |
16 December 2025

Keabetswe Pheko Moshagane.PIC.KENNEDY RAMOKONE

BoB engages market as gov’t debt costs rise

Mbongeni Mguni |
12 December 2025

New broom: Lesego Moseki, the new governor, takes on the challenge of raising sustainable funding for government. He spent nearly five years as the Financial Markets director

BOB ups rates, orders banks to stay put

Lewanika Timothy |
04 November 2025

Botswana Parliament in session. PIC MORERI SEJAKGOMO

Understanding the Constitution (Amendment) Bill 2025 – Bill: A comprehensive Analysis-Part 1

LETSHWITI TUTWANE | 14 h ago

Teen boy charged with 'murdering' mob member

Larona Makhaiza | 15 h ago

Woman kills brother in Paje murder-suicide

Brilliant Manje | 16 h ago

Vigilante cop, mob attack lead to alleged murder

Larona Makhaiza | 2d ago

Raguin reflects on historic Australian Open journey

Mqondisi Dube | 19 h ago

NDP 12’s small missing piece

Mbongeni Mguni | 23 Jan 2026

Defence objects psychologist's testimony in UB rape case

Larona Makhaiza | 1d ago

FMD cases suspected in North-East

Mbongeni Mguni | 1d ago

Child protection needs more than prevailing laws

The rise in defilement and missing persons cases, particularly over the recent festive period, points not merely to a failure of policing, but to a profound and widespread societal crisis. Whilst the Police chief’s plea is rightly directed at parents, the root of this emergency runs deeper, demanding a collective response from every corner of our community. Marathe’s observations paint a picture of neglect with children left alone for...

The Monitor Editor | 27 January 2026

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.

Explore

More

More lending rates to rise on liquidity squeeze

More banks are set to increase the interest rates they charge on loans, while others intend to narrow their lending to clients with the highest returns, as a long-running liquidity crisis in the banking sector tightens its grip.