AcKainley Insider

13/07/2026

Botswana's public debt has more than doubled in Five Years

P92.7 billion. That is the total public debt of Botswana which is government debt obligations as of March 2026. Just five years ago in 2020/21, that same figure stood at P42.4 billion. The country has, in the space of a single presidential term more than doubled its total public debt burden.

To put that in perspective: Botswana’s total public debt stood at P33.1 billion in 2014/15. It has now nearly tripled over the past eleven years with more than half of that increase occurring in the last five years alone.

Outstanding T-Bills stood at a modest P538 million in 2014/15. By March 2026 they had surged to P12.2 billion. This instrument, designed for liquidity management rather than long-term financing and it has increasingly become a tool of fiscal necessity.

Bond issuances grew from P6.8 billion in 2014/15 to P36.1 billion in March 2026. Including bonds, T-Bills and the newly introduced borrowings from the Botswana Public Officers Pension Fund (BPOPF), the Bank of Botswana, and commercial banks, domestic debt is now the important feature of the government's balance sheet.

External debt has also been rising. Total external debt outstanding grew from P16.4 billion in 2022/23 to P28.8 billion in March 2026 with multilateral lenders notably the African Development Bank, the International Bank for Reconstruction and Development and the OPEC Special Fund accounting for the bulk of the increase.

13/07/2026

Agriculture Gets 2% of Commercial Bank Credit Despite Being a Stated Economic Priority

P1.99 billion. That's what commercial banks lent to agriculture in March 2026. Out of P89.7 billion on the table.

Loans to agriculture in 2026 stood at P1.99 billion out of a total loan book of P89.7 billion which is approximately 2.2% of all commercial bank lending. This figure has barely moved in ten years (it was P1.1 billion in 2016). Government policy documents NDP 12 & BETP consistently cite agricultural diversification as a pillar of the post-diamond economy.

Banks aren't cruel. they put money where the risk makes sense and the returns show up. If they're walking away from farming they're not being told a story they're reading a balance sheet.

12/07/2026

08/04/2026

Botswana Savings Bank to handle Student Allowance Payments

08/04/2026

Sechaba’s Quiet Strength and Its Uncomfortable Dependence

KBL, the dominant contributor to Sechaba, saw revenue decline from P2.99bn to P2.93bn alongside a 9 per cent decline in volumes. Under normal circumstances that would raise concern but the more telling signal was on the costs as expenses fell sharply from P2.27bn to P2.06bn.

The picture at Coca-Cola Beverages Botswana was less reassuring. Revenue declined from P1.25bn to P1.22bn but unlike KBL costs grew even as volumes declined by 7 per cent. The result was a squeeze on profitability with earnings falling by roughly 40% undoing the good the beer business has done

At the end, Sechaba still delivered. Profit after tax rose 19 per cent mainly driven by a 17 per cent increase in share of profit from associates which climbed from P338.6m to P396.2m.

06/04/2026

BBS Bank Post P113 million loss amid out of control costs

BBS bank posted a net loss in 2025 as rising costs absorbed income. BBS reports a 15.9% increase in interest income, from P479.7 million to P556.0 million, this increase was then absorbed by interest expenses that surged 52,9% from 269million to 412.0 million, , while credit losses nearly quadrupled, rising from P19.1 million to P77.5 million worsening the situation and causing the net interest income to decline by 31.5%.

The pressure flow right to the income statement causing total income to fall by roughly 30%, from P260.6 million to P182.2 million. What was once a P38.1 million profit in 2024 turned into a P113.3 million loss in 2025.

The balance sheet tells another story with Non-performing loans increasing from 5.23% to 6.28% this is a signal that credit quality is getting weak, the bank may not be taking in significantly more loans but it’s taking on worse ones.

Operating cash flow swung from -P219 million to +P120.8 million which is a good improvement but even that positive doesn’t fully offset the downside as cash balances still declined, falling from P675.8 million to P584.7 million.

24/03/2026

Botswana Minerals Raises P21 million to fund Copper Exploration in Botswana

Botswana Minerals PLC through issuance of new shares has secured £1.15 million in funding to accelerate its copper exploration programme in north-western Botswana.

The company issued 460 million new ordinary shares at 0.25 pence to both existing and new investors, the operation also included cash participation by certain directors.

This follows discovery of Copper and Lead-Zinc though AI analysis in North-West Botswana. The analysis has helped identify several areas that could contain valuable minerals across Botswana Minerals’ large landholding in the Damaran Belt.

The analysis outlines two main types of potential deposits. The first suggests the presence of copper and other metals like silver, nickel and cobalt, likely formed by ancient underground heat and fluid activity. The second points to a 20-kilometre stretch that could contain lead and zinc deposits spread over a wide area.

23/03/2026

RDC Properties Profit Jumps, on Paper

RDC Properties reported a 53% increase in annual profit to P236.8 million this was supported by operational cash generation and higher property valuations. However, a significant portion of the growth comes from fair value adjustments rather than recurring cash earnings.

A large portion of the reported profit increase is driven by fair value gains on investment properties which contributed over P130 million out of the total P236.8 million profit. This means more than half of headline earnings came from revaluation adjustments rather than day-to-day rental operations. While revenue growth was relatively modest at 5% to P600.9 million, and net property income increased by 8%, the scale of profit expansion is disproportionate to these operational gains.

Total cash balances rose 104% to P233.6 million which was also driven by the disposal of non-core assets exceeding P200 million. These disposals were achieved at an 8% premium to book value and the proceeds were used to reduce debt which reduced loan-to-value ratio down from 41.7% to 37.7%.

23/03/2026

Letlole La Rona Profit Falls as Rates Hit Property Values

Letlole La Rona Limited has issued a caution to investors, saying its Profit before tax for the six months to December 2025 is expected to fall 40% to 50%, to between P41.3 million and P49.5 million from P82.6 million a year earlier.

The company said the decline is mainly driven by higher interest rates which have reduced property valuations and, in turn, lowered fair value gains. This decline is not due to operational weakness, such as losing tenants, but rather due to Botswana’s macroeconomic conditions

19/03/2026

S&P Says Botswana Is a Slightly Riskier Borrower Now

S&P Global Ratings has downgraded Botswana's credit rating to BBB- from BBB. According to the Agency, the demand for natural diamonds is low, competition from fake diamonds is rising and Botswana's production has fallen roughly 40% since 2023.For a country where diamonds account for the bulk of exports and a third of government revenue, this leaves the government with limited room to respond fiscal demands.

S&P claims that Botswana will continue to run fiscal deficit near 9% of GDP through 2029, the consequences of such a performance will trigger a downgrade as they put the country in a position that undermines it's credit worthiness.