WFY’26: Botswana factoring reaches US$45m as Afreximbank earmarks US$200m for sector

Botswana’s factoring market continued to expand in 2025, with estimated turnover reaching US$45m as demand for SME liquidity and receivables finance increased. In this country report, William Tazviinga Murwisi, Managing Director of Olympia Factors Commercial (Pty) Ltd, examines the development of factoring, invoice discounting and supply chain finance in a market where regulation, technology and government procurement are becoming increasingly important.

The article included in the World Factoring Yearbook 2026 (WFY’26) highlights estimated factoring penetration of 0.23 per cent of GDP in 2025 and domestic invoice discounting volumes of US$45m, up 15.4 per cent. It also considers the potential impact of AfCFTA and PAPSS, while looking ahead to an Afreximbank country programme that includes at least US$200m earmarked for factoring companies.

Below is an excerpt from his article.

Factoring continues to expand in Botswana, driven in part by developments in the commercial banking sector, which is increasingly focusing on enterprise and supply chain development initiatives. In 2025, the factoring industry reached an estimated turnover of USD 45m, equivalent to approximately 0.23 per cent of the country’s GDP.

Although no official statistical data on factoring is available in Botswana, the size of the market can be estimated given the relatively informal structure of the industry. One useful indicator is the volume of government purchase orders financed through the Citizen Entrepreneurial Development Agency (CEDA) and various private lenders. Based on the author’s estimates and information from economic and business publications, the total value of these purchase orders is estimated at approximately USD 325m. In the receivables finance segment, domestic invoice discounting remains the dominant product, with market volumes estimated to have reached USD 45m in 2025, which represents an increase of 15.4 per cent.

The future for factoring in Botswana looks bright as the market is buoyed by the recently introduced Citizen Entrepreneurial Development Policy (CEEP) and the efforts of Afreximbank and FCI who are working tirelessly to promote factoring, through training, financing and support. Afreximbank has declared a Country Program of USD 1.5bn for Botswana. A minimum of USD 200m is earmarked for factoring companies to take advantage of such a country budget.

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To read the whole article and 50 other specialist articles and country market reviews, order World Factoring Yearbook 2026 here.