A recent Bank of Botswana (BoB) survey on household indebtedness found that by December 2023, lending to households had experienced mild growth despite the central bank’s efforts to spur borrowing by maintaining interest rates throughout most of 2023.Credit, a major driver of economic activity and growth, was mildly taken up by households as the pains of a subdued economic environment weighed in on their confidence to leverage on debt.
“The results of the survey show that 80% of banks and 50% of the surveyed microlenders found credit demand to be moderate in 2023, while 70% of banks and 60% of microlenders expect credit demand to be high in 2024,” the BoB found.
