26 February 2026
Botswana’s inflation will peak at just over 5% this year, down from a December forecast of 6.2%, due to “stabilising exchange-rate dynamics,”Bank of Botswana Governor Lesego Moseki said.
Inflation risks are high due to a proposed 46% increase in electricity tariffs requested by the Botswana Power Corporation for the 2027 fiscal year, Moseki said at a monetary policy statement meeting on Tuesday.
“The anticipated increase in public-transport fares is also expected to be inflationary, while the outbreak of foot-and-mouth disease may lead to higher food inflation,” he said.
A proposed reduction in the number of goods zero-rated for value-added tax in the 2026 budget could also put upward pressure on prices.
The bank would continue to pursue an accommodative monetary policy stance and seek opportunities to reduce interest rates to encourage economic activity, Moseki said.
Source: https://shorturl.at/TxhH3
