Botswana’s Rising Prices

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Earlier this week, Choppies CEO Ramachandran Ottapathu issued a sharp warning on national radio: the weakening of the Pula against the South African Rand cost the retailer P48 million overnight. That cost, he said, cannot be absorbed by retailers alone—consumers should brace for price hikes across everyday essentials.

This isn’t just a corporate loss. It’s a sign of what’s coming for everyone.

Why This Matters

Botswana imports the majority of its food, fuel, and household products from South Africa. When the Pula weakens against the Rand, it takes more of our currency to buy the same goods—without any increase in wages or economic output. This is imported inflation.

With the Pula under pressure, a national hiring freeze in effect, and a fiscal crisis unfolding due to declining diamond revenues, the economy has entered a fragile phase. Retailers like Choppies are already signaling that price increases are inevitable, and the pain will be passed down the chain to everyday households.

How This Will Affect Batswana

Grocery and fuel prices will rise
Basic goods sourced from South Africa—maize, cooking oil, flour, toiletries—will become more expensive. Transport costs will likely follow.

1. Lower-income households will be hit hardest
   Any inflation disproportionately affects those with little or no financial cushion. For families living paycheck to paycheck, every increase in food or transport eats into essential survival budgets.

2. Small businesses face shrinking margins
   Entrepreneurs importing goods will find it harder to stay profitable unless they increase their prices too, risking customer pushback.

3. Savings lose value over time
   If your money is sitting in a standard savings account with low interest, it is silently eroding in value as prices rise faster than your returns.

How to Defend Yourself from Inflation

You may not be able to stop the Pula from losing ground—but you can build a buffer and reposition your financial strategy. Here’s how:

1.Start earning in stronger currencies

Look for freelance, remote, or digital work that pays in USD or ZAR. Even earning a small amount in foreign currency each month can serve as a hedge against local inflation.

Platforms like Upwork, Fiverr, or online tutoring services can be viable entry points for professionals, students, and creatives.

2.Build small side hustles with fast turnover

Buy low, sell local. Whether it’s eggs, aesthetic phone cases, or bulk resale of mobile data, keep your operations lean and high in demand. Focus on cash flow and turnover, not just scale.

3.Save and invest in inflation-resistant assets

Consider dollar savings accounts or ETFs through platforms like EasyEquities. Treasury bills or unit trusts can also offer more stable returns than a regular savings account.

Even small monthly contributions (P100–P500) into an investment instrument are better than none.

4.Reduce dependency on imported goods

Grow what you can. Buy local where possible. Start a home garden or partner with local producers to sell Botswana-made products. The less reliant you are on imported goods, the more control you’ll have over your household spending.

5.Learn high-demand digital skills

Coding, digital marketing, animation, finance, content creation—skills that can help you earn more, start a business, or freelance globally will matter more than ever.

So Finally 

We are entering a period where adaptation will determine who gets left behind and who survives. As businesses like Choppies publicly admit that inflation is now unavoidable, it’s a clear signal that households, students, entrepreneurs, and professionals must adjust quickly.

This is not the time to panic—but it is the time to take action. Protect your value, create new income streams, and position yourself for resilience.

Source: Gabz FM