Absa Bank Botswana increased revenue by 5 percent in 2025 despite one of Botswana’s most challenging economic periods in recent years, according to the bank’s latest Integrated Report.
Profit before tax declined by 10 percent as higher funding costs and credit impairments weighed on performance, although the bank reported a return on equity of 20.8 percent.
The results come amid a slowdown in Botswana’s diamond-dependent economy. Weaker global demand for diamonds reduced mining production and export earnings in 2025, contributing to slower economic activity. The African Development Bank estimates the economy contracted by 0.7 percent during the year.
Absa Bank Botswana Chairman Cosmas Moapare said the bank’s performance reflected efforts to diversify revenue streams.
“Despite subdued market conditions, the Bank delivered revenue growth of 5 percent, supported by strong non-interest income growth, demonstrating the benefits of ongoing diversification efforts,” he said.
According to the report, non-interest income accounted for 41 percent of total revenue in 2025, reflecting increased earnings from payments, transactional banking and digital services.
The bank also extended P295 million in financing to small and medium-sized enterprises, growing its SME portfolio to P463 million. In addition, it financed P76 million worth of renewable energy projects for agricultural clients.
The bank also extended P295 million in financing to small and medium-sized enterprises, growing its SME portfolio to P463 million. In addition, it financed P76 million worth of renewable energy projects for agricultural clients.
Absa’s strategy reflects a broader trend across Botswana’s banking sector, where lenders are seeking to expand income sources beyond traditional lending activities.
Banks have increasingly focused on digital banking, transactional services and SME financing as customer behaviour shifts toward digital channels.
According to Statistics Botswana, internet penetration reached 81.4 percent in 2025. The Bank of Botswana estimates that more than 60 percent of adults now use mobile financial services.
Absa Bank Botswana Managing Director Keabetswe Pheko-Moshagane said investments in technology continued to support the bank’s growth strategy.
“Our strategic focus on revenue growth and diversification continued to yield positive outcomes despite the more constrained operating environment,” she said.
She said the bank continued investing in digital payment capabilities, cybersecurity and technology infrastructure, including payment solutions designed to improve customer convenience and facilitate cross-border transactions.
Moapare said the bank would continue focusing on customer service, digital transformation and risk management.
“The Board remains confident that sustained focus on customer centricity, digital transformation, risk discipline, and inclusive growth will position the Bank to capture emerging opportunities and deliver enduring value,” he said.
Botswana’s commercial banks have increasingly directed capital toward sectors including renewable energy, small businesses and digital enterprises as the country seeks to broaden economic activity beyond mining.
