𝗦𝗘𝗙𝗔𝗟𝗔𝗡𝗔 𝗣𝗥𝗢𝗙𝗜𝗧𝗦 𝗣𝗟𝗨𝗡𝗚𝗘 𝗔𝗦 𝗣𝗨𝗟𝗔 𝗪𝗘𝗔𝗞𝗡𝗘𝗦𝗦 𝗛𝗜𝗧𝗦 𝗜𝗠𝗣𝗢𝗥𝗧 𝗖𝗢𝗦𝗧𝗦

Botswana retail giant Sefalana Group has reported a sharp fall in earnings, with net profit dropping to P234 million for the financial year ended April 2026 from P426 million a year earlier, underscoring the growing pressure that currency volatility is exerting on import-dependent businesses.

The results mark the group's first annual decline in profitability since the 2017 financial year, when the closure of the BCL copper and nickel mine triggered widespread job losses and weakened consumer spending across the economy.

Sefalana Group Managing Director Chandra Chauhan said the deterioration in earnings was largely driven by the 8 percent depreciation of the Botswana pula against the South African rand in July 2025, which significantly inflated the cost of imported merchandise.

"Since the majority of products consumed locally are imported from South Africa, the currency adjustment increased the cost of purchases," Chauhan said.

The results illustrate the vulnerability of Botswana's retail sector to exchange rate shocks, given the country's heavy reliance on South African imports for food, household goods and other consumer products. While retailers have attempted to manage rising procurement costs, persistent pressure on household incomes has limited their ability to fully pass higher prices on to consumers without risking
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