Botswana Budgeting Tips for 2025

As with economies elsewhere, Botswana’s economy continues to face a range of pressures and uncertainties in 2025. For many households, it’s important to make every pula count.

What are the current economic indicators in Botswana telling us?

Cooling demand for diamonds, coupled with dysfunctional and corrupt state-owned enterprises, are taking a toll on the fiscus.

According to a report in News24.com, the country has an estimated shortfall of P6.42 billion (R8.35 billion) per month.

Without government intervention, analysts are expecting the economy to contract by 1.7%. That, in turn, will push up inflation and increase the cost of living.

Here’s a round-up of practical tips for saving money and making your household budget go further.

Create weekly meal plans

Planning your family’s meals at least one week in advance reduces waste and provides time to shop around for special deals on key ingredients.

Major retail stores, such as Spar and Choppies, always have promotions and specials available.

When shopping for meat, ask the butcher for cheaper cuts. Chicken, offal, oxtail and goat meat are versatile, nutritious and considerably cheaper than beef, lamb and pork.

To cut costs further, include at least one plant-based meal in the weekly menu.

Buy in bulk where you can

Once the meal plan is complete, buy all dry goods, and any food items that can be safely stored, in bulk.

It’s cheaper to purchase large quantities of rice, pasta, flour and mielie meal at the beginning of the week or month.

Vegetables like onions, peppers, carrots and potatoes are more affordable in large quantities. They also have a long shelf life.

Fours Cash & Carry and Trans Cash & Carry are good places to bulk buy in Botswana.

Think quality over quantity

Don’t buy the cheapest clothing, shoes and household goods. Spend a little more on quality items that will last longer.

Botswana has a vibrant fashion, accessories and interior décor scene. Compare prices in boutiques in and around Gaborone.

Stores like Shaggy’s Boutique, Jazella’s, and Options offer a range of quality goods at reasonable prices.

Price check service providers

Mobile phone contracts, medical aid contributions, and household and vehicle insurance premiums take a big chunk out of a monthly budget.

Conduct regular price checks, ask for better deals, and switch to more affordable service providers.

Request quotes from the following service providers:

• mobile phone operators – Mascom, Orange, beMobile
• medical aid providers – Pula Medical Aid Fund, Bomaid, Botsogo Health Plan, BPOMAS
• short-term insurers – Old Mutual, Hollard, Bryte, BIC.

Be waterwise and power savvy

Household utilities like water and electricity are expensive, particularly in urban areas like Francistown, Palaype, Gaborone and Maun.

Using resources sparingly can reduce your monthly outlay. Plus, it’s the right thing to do.

Install a rainwater harvesting tank, geyser blanket and timer, or solar panels and inverter. They come with initial outlays, but provide savings over the long-term.

Use surplus funds to pay off debt

Rather than spending any spare cash at the end of the month, use it to pay off debt. Interest charged on mortgage loans and bank overdraft facilities is steep.

On average, Batswana are paying around 10% extra on a home loan and up to 20% or more on an overdraft each month. This is money that could be spent elsewhere.

The quicker debt is paid off, the more cash is available.

Avoid using a credit card

Instead of using a credit card to fund purchases, pay cash. This makes it easier to stick to a monthly budget. There are no extra costs apart from the one-off withdrawal fee.

Credit cards are costly when the balance isn’t paid in full. Interest on late credit-card payments in Botswana currently range from 28% to 32%.

Quit expensive (and unhealthy) habits

Opting for a healthier lifestyle is good for you and your family finances.

Smoking and drinking alcohol are increasingly expensive. A pack of 20 Marlboro cigarettes costs around P48. A 750 ml bottle of spirits costs from a few hundred to a few thousand pula.

If you smoke one pack of cigarettes a day, quitting smoking can save more than P1,500. Choosing soft drinks over alcoholic beverages can boost your monthly kitty by a thousand pula or more.

Bridging the gap in the monthly budget through Lamna Botswana

Even with the best tips and intentions, there are times when you can’t meet your monthly budget. That’s when a fully paid up luxury item can prove invaluable.

At Lamna Botswana, we accept high-value tangible assets as security for short-term loans. Call us on 71 388 088 to find out how our lending model works.

Alternatively, apply for an asset-based loan online and bridge the gap in your budget.