Botswana households spend 63% of income on debt
Bank of Botswana survey shows debt repayments absorb earnings as total household debt rose to P70.3 billion in 2025.
Botswana households are now dedicating 63 percent of their income to debt servicing, according to the Bank of Botswana’s 2025/26 Household Indebtedness Survey Report released on October 22, 2026. This high ratio reflects the pressure from rising borrowing costs, stagnant wages, and ongoing living expenses on consumers.
The survey found that total household debt grew by 2.5 percent to P70.3 billion in December 2025, representing 26.1 percent of the country's gross domestic product. While the central bank does not currently view this as a systemic threat, it noted that borrowers are increasingly vulnerable to financial shocks. Debt-to-income ratios for both men and women have risen, with those aged 40-49 facing the highest average ratio at 52.7 percent.
Signs of repayment stress are evident, as the average default rate reported by banks more than doubled from 2 percent in 2024 to 4.7 percent in 2025. The Bank of Botswana stated that household leverage has increased relative to income, reducing resilience to income, interest rate, and cost-of-living shocks.
Why it mattersBotswana households are struggling with high debt repayments, impacting their financial resilience.