So Bank of Botswana decided to keep the Monetary Policy rate at 1.9%, what does this mean for young Batswana

Good morning! Let’s get into this.

April 2025 MPC Decision: What It Means for Young Batswana

On April 17, 2025, the Bank of Botswana's Monetary Policy Committee (MPC) released its latest policy update, maintaining the Monetary Policy Rate (MoPR) at 1.9%. While that might sound technical, here’s what it means for young professionals, students, and entrepreneurs navigating Botswana’s economy.

The Global and Local Backdrop

Botswana’s economy is facing serious headwinds:

• The country entered a recession in 2024, shrinking by 3% due to weak mining performance and slow growth in non-mining sectors.

• Global uncertainty is on the rise, especially with the potential 37% tariff on Botswana’s exports to the U.S., currently paused for 90 days.

• The silver lining? Oil prices have dropped, which could ease inflation pressures and lower transport and production costs.

Inflation: Still Under Control

• Inflation ticked up slightly from 2.7% in February to 2.8% in March, but it's still below the target range of 3–6%.

• It's projected to stay low in 2025 (2.5% average) and rise modestly in 2026 (4.9%).

What this means: The cost of living is stable for now—a good sign if you're budgeting as a student or pricing your goods as a small business owner.

Borrowing Money? Now's the Time

• With the MoPR held at 1.9% and credit facility rates at 2.9%, interest rates are at historic lows.

For young entrepreneurs:

• It’s a good time to take out a loan to start or grow your business, especially in non-mining sectors that the government wants to promote.

For professionals & students:

• If you’re looking at car financing, home loans, or education loans, rates are favourable.

Looking Ahead: Where Are the Opportunities?

• The government expects a modest recovery in 2025 (3.3% growth), but global uncertainty, especially around diamond exports, could slow it down.

• The Bank emphasized the need for economic diversification. That signals young people to explore agriculture, tech, tourism, and services sectors.

And finally

This MPC decision isn’t just about numbers. It’s about your wallet, your hustle, and your future.

Low inflation = stable cost of living, Low interest rates = cheap credit for business and education. A tough global economy = time to think smart and diversify your skills or side income