Inflation is eating away Batswana's money by 3.6% year-by-year

Table of Contents

• How Inflation Is Shaping Your Wallet: What You Nee …

  • Inflation Snapshot: February 2025

• How to Defend Your Pula From Inflation

  • 1. Money Market Funds & Fixed Income Securities

  • 2. Retail Government Bonds (Like BoB Savings Bonds …

  • 3. Agribusiness or Farming Projects

  • 4. Stock Market (BSE)

  • 5. Invest in Skills

• 🧠 Final Thoughts

Good morning! Let’s get into today’s article:

How Inflation Is Shaping Your Wallet: What You Need to Know and Do Now

Inflation is one of those invisible forces that affects every single Pula in your wallet—even if you’re not paying attention. According to the February 2025 CPI report by Statistics Botswana, prices have increased by 3.6% year-on-year (YoY) compared to February 2024 and 0.4% month-on-month (MoM) from January 2025.

But what does that mean for you?

Inflation Snapshot: February 2025

• Overall Inflation (YoY): 3.6%

• Monthly Change (MoM): 0.4%

The biggest contributors to the rising cost of living were:

• Housing, Water, Electricity, Gas & Other Fuels (+5.5%)

• Food & Non-Alcoholic Beverages (+3.4%)

• Transport (+1.6%)

• Miscellaneous Goods & Services (+5.5%)

These are essential expenses that almost every Motswana deals with daily.

How to Defend Your Pula From Inflation

If your money is sitting idle in a regular savings account earning less than inflation (which it likely is), you’re technically losing purchasing power.

Here are some smart investment moves to consider—especially if you're a young professional, student, or entrepreneur trying to stay ahead of inflation:

1. Money Market Funds & Fixed Income Securities

• These are low-risk investments and generally offer better returns than traditional savings.

• Ideal for students or young professionals looking for safer ways to grow emergency funds.

2. Retail Government Bonds (Like BoB Savings Bonds)

• Backed by the Bank of Botswana.

• Often beats inflation over time.

• The minimum entry is affordable, making it perfect for first-time investors.

3. Agribusiness or Farming Projects

• With food prices rising, investing in small-scale farming (e.g., poultry, vegetables) can provide profits and food security.

• Entrepreneurs can build agro-processing businesses and benefit from export incentives.

4. Stock Market (BSE)

• Carefully selected local listed companies can beat inflation. (I’m working on a free pdf screen top stock companies in Botswana Stock Exchange, stay tuned)

• Look into dividend-paying stocks (e.g., banks or consumer goods companies).

5. Invest in Skills

• Inflation-proof your income by upgrading your skillset: tech, finance, digital marketing, coding, or trades.

• The more specialized your skills, the more you can charge or earn.

🧠 Final Thoughts

Inflation affects more than just businesses—it affects students buying lunch, professionals paying rent, and entrepreneurs importing products. The key to surviving and thriving is understanding how your money is being eroded and acting to grow it faster than prices rise.

The earlier you start investing, the more inflation works for you instead of against you.