Botswana Still Uses Mostly  Cash for Local Transactions

(3 Minutes Read)

Financial data extrapolated from 2011 as a base year shows that Batswana prefers to use cash as a means of transacting goods and services, with the local economy noticing a growing surge in the use of cash, whilst also seeing growth in its other payment forms such as Electronic Funds Transfer (EFT).

The use of fiat notes or cash in Botswana grew by over 100% between 2011 and 2023, making the country an outlier as the world embraces newer payment technology, including cryptocurrencies. The latest data is contained in a Bank of Botswana (BoB) research paper released recently.

Financial data extrapolated from 2011 as a base year shows that Batswana prefer to use cash as a means of transacting goods and services, with the local economy noticing a growing surge in the use of cash, whilst also seeing growth in its other payment forms such as Electronic Funds Transfer (EFT).

The researchers also noted that the highly held denomination of currency was P200 which reflected the inflationary movement of prices that eroded the purchasing power of money. This means the value of other lower denominations such as P50 or P100 has been eroded by inflation forcing local consumers to hold on to larger notes.

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Whilst the majority of cash transaction reports notified to the FIA in 2022–2023 came from banks, other entities reporting included car dealerships, insurance brokers, and attorneys, amongst others.