10 Nov 2026

Amid rising cost of living owing to global conflicts and shocks, government strives to protect livelihoods, preserve economic stability and shield economy from inflation, says President Advocate Duma Boko.

In the State-of-the-Nation Address on Monday, President Boko stated that government temporarily suspended fuel levy, road levy and security of supply levy for a period of six months at a cost of approximately P700 million to enhance economic stability amid turbulence and uncertainty.

Nonetheless, he said the country’s economy was showing signs of recovery. 

The President said the contraction narrowed significantly from 2.8 per cent in 2024 to 0.7 per cent in 2025, supported by improving conditions in the diamond sector and a moderation in the decline of mining activity. 

He said macroeconomic fundamentals were also strengthening, with Foreign Exchange Reserves rising by 32.2 per cent to P63.2 billion (USD4.4 billion) in July 2026.

“The growing buffer reflects prudent economic management and reinforces government confidence in Botswana’s capacity to navigate global uncertainties,” he said.

As part of the government’s commitment to building a more inclusive financial system, President  Boko said government had facilitated the introduction of a Basic Bank Account to expand access to affordable banking services, particularly for Batswana in the low-income bracket earning less than P4 000 per month. 

He explained that the account attracted no monthly maintenance fees and required a minimum opening deposit of only P50.

“Deposits are free, as are the first three withdrawals each month and the first Bank Card is free of charge,” he said. 

Also, he said to improve Botswana’s financial payments system, reduce the cost of doing business and increase the speed at which money circulates through the economy, government has introduced an additional payment clearing window at 5pm, extending the previous 3pm cut-off. 

This reform, he said would enable more payments to be processed on the same working day, thereby improving cash flow for businesses, suppliers and households. 

He stated that during the period February 2026 to October 2026, transactions valued at P66.92 billion were processed through the additional clearing window, demonstrating its significant contribution to the efficiency of national payments system.

He also spoke of efforts toward protecting businesses that keep people employed, noting that since January 2026 to October 2026, government settled 216 050 supplier invoices valued at over P62 billion, reinforcing cash flow and job security for local businesses. 

President Boko said government continued to investigate and address concerns pertaining to legacy outstanding payments. 

“During the last SONA, I announced the intention to establish the Botswana Mercantile Exchange (BMX) to support commodity trading, price discovery and risk management, thereby diversifying the economy and firmly positioning Botswana as a hub for regional trade. I am delighted to report that we have made progress in this area. The BMX, which was soft-launched in March 2026, commenced trading in red sorghum, with further commodity and cross-listing arrangements still being worked out,” he said.

He said Botswana Financial Services Centre (BFSC) was now at the stage of securing implementation partners ahead of the commencement of the project in the next financial year.  

President Boko said at the moment they were finalising Botswana’s very first comprehensive National Environmental, Social and Governance (ESG) framework. 

“The framework is our passport to the future economy, establishing clear rules and transparent goals,” he said.

President Boko said Botswana was being positioned as a socially conscious and sustainable green investment destination.

With a view to enhance global competitiveness of domestic enterprises, he said government has established a specialised fund to mitigate structural constraints faced by exporters.

He said an amount of P15 million in the current financial year has been allocated to the fund. 

To date, President Boko said 78 companies have registered to participate, therefore urging national export community to utilise the mechanism to expand their production volumes and global reach.

He indicated that as the country prepared for international scrutiny through upcoming credit reviews expected in March-April 2027, and financial crime assessments in July 2027, government will monitor implementation and take corrective action wherever weaknesses were identified. ENDS