- Tsaone Segaetsho
The Financial Stability Council (FSC), in its last meeting of 2025, revealed in its report that Botswana’s financial system remains resilient and continues to provide financial services to households and businesses without constraint.
This appears to be a reiteration of the previous report, as the FSC, in November 2024, similarly concluded that “the financial system of Botswana continues to be resilient, robust, safe, sound and unconstrained in supporting economic activity.” This was reflected in the 2024 Annual Report, although that report did not specifically mention the provision of services to households in its conclusion.
The FSC is chaired by the Governor of the Bank of Botswana, Cornelius Dekop, who has led the central bank until his announcement of a “mutual separation” this week. President Duma Boko has since appointed Deputy Governor Lesego Moseki to replace him, effective from 11 February 2026.
The FSC is the statutory body responsible for financial stability in Botswana and includes representatives from the Ministry of Finance, NBFIRA, the Financial Intelligence Agency (FIA), and the Deposit Insurance Scheme.
In its November 2025 report, the FSC also acknowledged the persistence of macro-financial risks, including subdued economic growth, liquidity distribution risks, climate-related risks, and sectoral vulnerabilities.
“The FSC observed that all of these require continued vigilance and, in some instances, proactive policy responses,” stated the November 2025 Financial Stability Report.
The Bank holds two FSC meetings per year, the first in May and the most recent on 6 November 2025.
According to the Bank of Botswana, since the last FSC meeting in May 2025, global financial conditions have eased modestly, with some recovery in asset prices.
“However, underlying vulnerabilities have intensified, elevating global financial stability risks. These include elevated asset valuations, rising sovereign debt burdens, and deepening fragilities in foreign exchange markets. The expansion of NBFIs into traditional credit intermediation channels has increased their exposure to market and liquidity risks, with potential spillovers into core banking systems. Therefore, financial sector regulators globally emphasise the importance of strengthened and coordinated cross-sector supervision to monitor and manage these interconnected risks,” said the Financial Stability Report.
According to a statement by the Bank of Botswana, domestically the FSC has judged that the banking and NBFI sectors remain safe and sound, with adequate capital buffers, operational liquidity, and sustained profitability.
