Banks Report Sharp Rise in Loans at Risk of Default as Economic Conditions Worsen

Commercial banks in Botswana recorded a significant increase in loans classified as 'special mention' in 2025, with the figure rising to P5.5 billion. This represents a 78.3% growth from P3.1 billion in 2024, according to the Bank of Botswanas Banking Supervision Annual Report. The report states that banks are bracing for potential loan defaults due to unstable economic conditions.

These loans, while not yet in default, have identified repayment weaknesses that could lead to financial distress if unresolved. PIC KENNEDY RAMOKONE noted that the surge in special mention loans reflects heightened warning signs among borrowers struggling to meet debt obligations.