SMEs in Botswana at Crossroads

January 21, 2025

(2 Minutes Read)

While some business owners enjoyed a surge during holiday demand that extended into the New Year, others are grappling with reduced consumer spending and tighter budgets.

Small and medium enterprises (SMEs) across Botswana are navigating mixed fortunes as they deal with a seasonal sales slump from December to date. While some business owners enjoyed a surge during holiday demand that extended into the New Year, others are grappling with reduced consumer spending and tighter budgets.

This diversity underscores the resilience and adaptability of SMEs as they strategies to overcome challenges in an unpredictable economic climate. Street vendor Tambudzai Abelphillip shared that while she made sales during the festive season, belied expectations. She emphasised the importance of addressing market dynamics to improve sales.

Hairdresser and nail technician, Shanise Mosebudi noted that her business thrives in December, fueled by numerous events, such as weddings and birthday parties. She added that income generation continued as she plaited students’ hair in preparation for school reopening.

Mosebudi, however, expressed concerns over the lack of regulation in the informal sector, pointing to the influx of illegal foreign business owners catering to the same market. The formal sector is completely different from the informal sector, where anyone can establish a business and start making profits.

Perfekt Roast Kofi Managing Director, Seabe Motlogelwa highlighted that despite persistent rains, his business remained open during the festive season. He noted a promising start to January as people returned to work, boosting daily sales. However, he acknowledged that many clients, especially parents, were operating on tighter budgets due to back-to-school expenses.

Letlhabile Southern Young Farmers Association is on a mission to equip young farmers from the Southern region with the skills, knowledge, and networks they need to thrive as commercial farmers. The association, chaired by Manners Bohule, comprises 35 commercial farmers from areas such as Mmathethe, Segwagwa, Kanye, Moshupa, and nearby villages. He said farmers repay their loans within a year, with interest, enabling the sustainability of the funding model. Bohule, who primarily rears sheep, has diversified to also include crop farming due to seasonal challenges.

The association is also embracing modern technology to enhance productivity, such as generators and six-foot deep ploughing methods, which are costly. However, drone technology has proven to be both cost-effective and efficient. Bohule encourage youth to start farming while they were still young and energetic.