Botswana’s import of food& beverages increased by 19.2%

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In May 2025, Botswana imported P1.26 billion worth of Food & Beverages, representing 15.4 percent of the country’s total imports. This was a 19.2 percent increase compared to April, signalling notable cost pressures in the supply chain.

Key drivers of the increase

• Coffee, Tea and Spices rose by 89.4 percent month-on-month. This category covers essential inputs for cafés, restaurants, and beverage manufacturers. Price increases here will flow directly into retail coffee prices and hospitality costs.

• Animal and Vegetable Fats and Oils grew by 43.0 percent. This includes cooking oil, butter, and margarine, which are core to both household consumption and the food services industry.

• Prepared Animal Fodder jumped 49.5 percent. Livestock and poultry farmers will face higher feed costs, likely resulting in more expensive meat, eggs, and dairy products in the coming months.

• Beverages, Spirits and Vinegar increased 27.6 percent. This reflects higher landed costs for beer, cider, and sweetened beverages, affecting hospitality and retail beverage pricing.

Impact on different groups

• Entrepreneurs in the food and beverage sector will need to manage tighter margins and may be forced to pass on higher costs to customers. Those dependent on imported raw materials are particularly exposed to further price volatility.

• Professionals can expect their cost of living to rise, especially in food, beverages, and dining. Disposable income will be squeezed if wage growth does not keep pace with these increases.

• Students will feel the pressure in everyday spending, from higher cafeteria prices to costlier takeaway meals and beverages.

Economic significance

The steep month-on-month jumps in specific categories point to either seasonal demand surges, supply constraints, or exchange rate effects making imports more expensive. Such increases feed into headline inflation, with the risk of eroding purchasing power across the economy. For businesses, this environment underscores the importance of diversifying supply chains and exploring local production where possible.

Strategic takeaway

Rising import costs create both challenges and opportunities. While they raise operational costs and consumer prices, they also improve the competitiveness of local substitutes. Entrepreneurs who can pivot towards domestic sourcing or value-added local production stand to benefit in this shifting cost environment.

Source: statistics Botswana