Batswana are feeling growing financial pressure as fewer households report income growth and many say their financial plans are being disrupted. This emerges from TransUnion Botswanaโs latest Q2 2025 Consumer Pulse Study.
The study found that only one-third (33 percent) of respondents reported income increases over the past three months, while nearly half (49 percent) said their finances were worse than expected. Alarmingly, one in four households (25 percent) reported job losses โ a nine-percentage point rise compared to last year.
Despite these challenges, optimism endures. Seventy-seven percent of respondents said they remained positive about their future finances, with Gen Z consumers (aged 18โ28) leading the way. Eighty-three percent of Gen Z respondents expressed optimism, and nearly nine in ten (87 percent) expect their incomes to increase in the coming year โ a ten-percentage point rise compared to last year.
The study identified inflation, job security, and housing prices as the biggest financial concerns for Batswana. Nearly eight in ten (78 percent) listed inflation among their top three concerns, followed by job losses (55 percent) and housing costs โ either rent or mortgage โ also at 55 percent.
In response, consumers are adjusting their spending habits. Over half (53 percent) said they cut back on discretionary spending such as dining out, travel, and entertainment over the past three months. Thirty-four percent cancelled subscriptions or memberships, while 30 percent reduced or cancelled digital services such as wireless, cable TV, or internet subscriptions.
Looking ahead, 57 percent of respondents expect to further reduce discretionary spending in the next three months โ significantly more than the 17 percent who expect it to remain the same and the 22 percent who expect it to increase. Meanwhile, 42 percent plan to cut back on large purchases.
โThese trends suggest that consumers in Botswana are scaling back short-term spending to prioritise long-term financial goals and essential expenses,โ said Kabelo Ramaselwana, CEO of TransUnion Botswana. โTrimming non-essential costs is a smart strategy to build and maintain financial stability and resilience.โ
The report also revealed that 34 percent of Batswana expect to miss at least one bill or loan payment in the next quarter. Of these, 42 percent plan to seek additional job opportunities or gig work to raise funds, 38 percent intend to make partial payments, and 25 percent plan to use their savings to cover the shortfall.
Access to credit remains critical, with 95 percent of respondents viewing it as important, yet only 41 percent felt they had adequate access. This gap signals a need for more inclusive lending. Looking ahead, 39 percent of respondents intend to apply for new or refinanced credit within the next year.
Among those seeking credit, 42 percent plan to apply for a personal loan (up six percentage points from Q2 2024), 30 percent plan to apply for a home loan, and 17 percent are interested in a car loan, lease, or student loan. Gen Z consumers lead the pack, with 43 percent planning to apply for credit, followed by 37 percent of Millennials (aged 29โ44) and 35 percent of Gen X (aged 45โ60).
โGen Z and Millennial consumers are entering the workplace and embracing lifestyle elements tied to career and family life, while also taking a strategic approach to credit โ carefully managing their credit profiles to enable confident transactions with financial institutions and empower themselves to achieve great things,โ Ramaselwana said.
