The 2025/2026 budget is here, and with it comes some big changes that could affect your wallet, job opportunities, and cost of living. Whether you’re a student, job seeker, entrepreneur, or working professional, it’s important to know what’s coming and how to make the most of it.

So, let’s break it down into what’s good, what’s challenging, and where you can find opportunities.

How Will the Budget Impact Everyday Life?

1. Cost of Living and Inflation – Expect Stability for Now

If you've been worried about rising prices, there's some good news! Inflation was just 1.7% in December 2024 and is expected to stay within a manageable range (3-6%). This means we shouldn't see sharp price increases for food, fuel, and household essentials.

2. Higher Taxes for High Earners – But Most People Won’t Feel It

If you’re in a higher income bracket, you might pay more in taxes as the government is raising personal income tax for top earners by 1.5%. Corporate tax is also going up slightly.

For most people, this won’t make a difference, but businesses and high earners may feel the pinch.

3. Housing: More Affordable Options Coming

Finding an affordable home has been tough, but the government plans to build 100,000 housing units over the next five years.

If you own land but can't afford to build, a new Botswana Savings Bank (BSB) initiative could help finance your house!

If you're renting, more housing supply could mean lower rental prices in the future.

4. Jobs: More Work in Mining, Energy, and Farming

If you’re looking for work, the budget highlights some upcoming job opportunities in different sectors:

• Mining – The Khoemacau Copper Mine is expanding, adding 2,000 new jobs.
• Battery Metals Industry – A new plant in Kanye will hire 300 people during construction and 200 permanently.
• Citrus Farming in Selebi Phikwe – More jobs in agriculture, with production tripling in the next year.
• Energy Sector – New power plants could mean more jobs in solar, wind, and coal energy.

However, these projects will take time, so competition for jobs will still be high in the short term.

5. Lower Electricity Costs on the Way

Electricity bills can be a huge burden, but Botswana is working towards reducing electricity costs by 30% over time.

More solar and wind energy projects are in the works, including:

• 600 MW Jindal Coal Plant in Mmamabula
• 200 MW of solar and wind power in Jwaneng and Letlhakane

These changes won’t happen overnight, but they could help lower electricity bills in the coming years.

6. Healthcare and Social Welfare – Some Big Wins!

If you or your loved ones rely on government support, here are some major changes:

• Old Age Pension (Tandabala Allowance) is increasing from P830 to P1,400 per month.
• New Baby Allowance – Parents with newborns will receive P300 per month for a year to help with childcare costs.
• Free sanitary pads for schoolgirls – A big win for young women!

On the healthcare side, the government is working to fix medicine shortages and improve hospital services. A national health insurance plan is also in the works, but it will take time to roll out.

Challenges You Should Be Aware Of

1. Job Market Still Tough, Especially for Youth

While new projects will create jobs, they won’t happen immediately. The government is pushing vocational training (TVET) to help young people gain skills for industries like manufacturing, mining, and AI.

If you’re a job seeker, consider upskilling in high-demand areas!

2. Government Services Might Get More Expensive

To raise more money, the government is cracking down on unpaid property rates and levies (P765 million is owed!) and may adjust fees for services like licenses, permits, and visas.

If you run a business or need permits, be prepared for possible price adjustments.

3. Healthcare Still Needs Major Fixes

The budget promises improvements, but right now:

• Many hospitals still have medicine shortages
• Private healthcare clinics are struggling because of delayed government payments
• The national health insurance plan is still in the early stages

If you rely on public healthcare, things might take time to improve.

4. Government Debt is High – Spending Cuts May Come

Botswana’s foreign exchange reserves have dropped from P84.9 billion in 2015 to P53.6 billion in 2024.

The government is trying to cut spending and increase revenue, meaning we could see fewer government projects and stricter budgeting in the future.

Opportunities to Take Advantage Of

1. Thinking of Starting a Business? Now’s a Good Time!

The budget supports small businesses with:

• Better access to international markets through trade agreements like AfCFTA & SADC-EPA.
• Reforms in public procurement, making it easier for Batswana businesses to win government contracts.
• More funding for entrepreneurs through CEDA and Botswana Development Corporation (BDC).

If you’ve been thinking about starting a business, this could be your moment!

2. Digital Economy is Expanding – Get Online!

The government is investing in broadband internet and online services:

• Over 500 schools will get internet access
• Botswana’s new National Retail Payment Switch (NRPS) will make online payments easier
• New e-commerce and digital opportunities

If you want to start a business or work remotely, digital skills will be more important than ever.

Final Thoughts: What Should You Do Now?

• If you're looking for work, Keep an eye on mining, energy, and agriculture projects, but also consider upskilling in vocational fields.
• If you're a small business owner, Take advantage of export opportunities and government procurement reforms.
• If you're a parent or caregiver, Expect more financial support for children and improvements in healthcare over time.
• If you're renting or looking to buy a home, More housing developments may lead to better affordability in the coming years.

Botswana is going through big changes, and while some challenges remain, there are opportunities for those who stay informed and prepared. Plan ahead, explore new skills, and take advantage of government initiatives to make the most of what’s coming!