As 2026 unfolds, Botswana’s commercial banking sector finds itself under intensified scrutiny amid a notable rise in non-interest income, spotlighting the escalating financial burden on households and small enterprises. Despite the central bank’s assurances that local banking fees remain competitive within the regional context, the sector’s heavy reliance on transactional charges is increasingly viewed as a barrier to broader financial inclusion. This conversation has gained momentum with the Competition and Consumer Authority (CCA) ramping up its oversight of financial services.
In the 2025/26 fiscal year, leading banks reported robust growth in non-interest revenue. Stanbic Bank Botswana recorded a 38 percent surge, while Access Bank and BBS Bank posted increases of 27 percent and 31 percent, respectively. Much of this growth correlates with an uptick in digital transactions, yet customers continue to express frustration over what they label as “punitive” fees. Notably, unpaid debit order penalties at major institutions like Stanbic can surpass P300, and over-the-counter withdrawal fees remain up to tenfold higher than ATM withdrawals.
Regional comparisons reveal that, despite domestic dissatisfaction, Botswana’s banking fees frequently undercut those in neighboring SADC countries. A 2025/26 study found that basic account maintenance costs in South Africa, Namibia, and Lesotho exceed Botswana’s by 48 to 76 percent. Nevertheless, analysts argue that the perceived severity of Botswana’s fees is intensified by its elevated cost-of-living index, the highest in the SADC region in 2025, leaving households with limited capacity to absorb these banking charges.
For small and medium-sized enterprises, these fees transcend mere inconvenience; they constitute a structural hurdle. SME representatives report that elevated transaction costs, paired with conservative lending practices among commercial banks, force many businesses to rely on retained earnings rather than formal credit. This persistent funding gap has been exacerbated by a recent 25 percent increase in government capacity-building fees targeting the private sector, further constricting cash flow and stalling growth initiatives.
In response, the Bank of Botswana has taken steps to alleviate liquidity pressures by reducing primary reserve requirements to zero, a strategic move intended to prevent banks from passing on higher funding costs to consumers. While the regulator stops short of imposing price caps, it mandates greater transparency, empowering consumers to “shop around.” Starting January 2026, the newly rebranded Competition and Consumer Authority wields authority to investigate any “unjustifiable” fee hikes, signaling a shift toward more rigorous regulation of fee-dependent banking models.
Consumer advocates caution that transparency alone may be insufficient to dismantle entrenched pricing mechanisms, especially as digital banking solidifies its role as the primary transaction channel. They warn that without clear benchmarks for reasonable fees, vulnerable customers risk entrapment in cost structures that offer little escape, even as banks continue to pour resources into technological and platform enhancements.
With headline inflation returning to the 3–6 percent target range by late 2025, policy focus is pivoting from price stability toward equitable service delivery. For low-income earners and emerging entrepreneurs alike, genuine financial inclusion will depend on whether banks can reconcile profitability with affordable access in an increasingly competitive and tightly regulated landscape.
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