Should the Bank of Botswana be raising interest rates to counter the inflation caused by the US-Iran War?
The Bank of Botswana (BoB) just released their April 2026 MPC statement, they've increased the Monetary Policy Rate (MoPR) by 200 basis points from 3.5 percent to 5.5 percent. This policy decision is intended to strengthen policy transmission and they've directed commercial banks not to increase their Prime Lending Rates (PLRs) Their policy approach directly reflects an economic dilemma and tightrope every central bank has to walk on.
Why Africa's Best Businesses Are Simple and 'Boring'
Business media, funding rounds and pitching competitions will have you thinking the only way to make money today is by building a complex tech platform, a flashy FinTech app, or a slick SaaS product. But the reality of doing business in Africa the most successful businesses are the boring ones.
The African Economics of 'Showing-Off' & Social Status
Urban African households with low-mid incomes allocate large, out-sized shares of their budgets to luxury goods, nightlife, and status-signaling consumption, while savings rates remain stubbornly low and real capital/wealth accumulation lags far behind consumption growth. This is not irrational behavior it is strategic adaptation to environments where formal institutions are weak, inequality persists, and therefore traditional markers of wealth and paths to capital accumulation remain inaccessible. This leaves visibility and social status as the only substitute for those who feel real wealth and capital remains out of reach.
Botswana's Diamond Crisis: Assessing How Effective the Government's Policies Have Been
This report finds that while the government's actions are necessary, they carry significant risks. Short-term policies have been reactive and sometimes contradictory. Long-term diversification plans face a history of slow implementation and are paradoxically tied to policies that increase the state's exposure to the volatile diamond sector. The recent public health emergency, caused by the fiscal crisis, highlights the social cost of this dependency.
How South Africa's gambling boom is reshaping the economy
South Africa’s gambling boom is now confirmed by Statistics South Africa, whose latest research reveals an explosive rise in online gambling and betting. This new data should fundamentally reframe the conversation: how does this reshaping household budgets, which businesses are supported and how is broader economy affected?
Nigeria's economy showed mixed signals in Q1 2025. GDP growth reached 3.40% in 2024, with projections for 2025 at 3.70%. Nigeria’s trade surplus contrasts with South Africa’s Q1 2025 deficit (-$3.1bn), but trails Egypt’s export-led recovery (15% YoY growth). Continent-wide, digitalization and non-oil exports remain critical for resilience against commodity shocks
Economic Insights: Investing in African Stock Markets (24/03/25)
This article discusses African stock markets, focusing on low IPO activity due to regulatory, market structure, and ecosystem issues. We emphasise the growth potential of African markets, driven by factors like a rising middle class, improved governance, and technological advancements such as mobile money. To boost IPO activity, solutions include attracting domestic retail investors, reducing IPO compliance costs, improving liquidity, and enhancing transparency and reporting standards. We suggest technological leapfrogging to overcome barriers and build stronger, more dynamic financial markets across Africa.
Botswana’s new govt. proposed minimum wage increase to P4,000 represents a 203% jump from the current rate of P1,321 for general workers. While the move could significantly improve living standards and reduce income inequality in one of the world’s most unequal societies, it also poses risks to employment, business sustainability, and economic competitiveness.
Will 2025 Be South Africa’s Economic Turning Point?
A renewed political coalition and improving business confidence signal hope for South Africa's economy in 2025. However, challenges such as fiscal pressures, infrastructure deficits, and high unemployment underscore the need for sustained reforms and prudent governance to achieve meaningful growth.
