Botswana faces a greater risk of inflation being higher than currently projected due to the proposed increase in electricity tariffs and transport fares.

The development is likely to negatively impact Namibian cross-border traders. 

An increasing number of Namibian women are venturing into cross-border trade to create their own source of income and wealth.

In an interview with NBC News, entrepreneur Mulela Muhinda decried how high transport costs reduce their profit margins.

Where she was meant to make a profit margin of about 50%, Muhinda said transport costs in Botswana are eroding almost 10%.

"If things could be done my way, authorities in Namibia should approach their counterparts here in Botswana and find a way of assisting us as cross-border traders."

The Bank of Botswana Governor, Lesego Moseki, buttressed the expected heightened inflationary pressures, which will eventually affect a general consumer. 

Currently, inflation is estimated at four-comma-one percent but is expected to average four-comma-five percent in 2026 and four-comma-seven percent in 2027.

"Overall, there is a greater risk of inflation being higher than currently projected, mainly due to the proposed increase in electricity tariffs by Botswana Power Corporation in April 2026, which would have a notable inflationary impact if it materialises. The anticipated increase in public transport fares is also expected to be inflationary."

That being the case, Botswana's economy is expected to continue to operate below full capacity in the short-to-medium term, therefore subduing demand-driven inflationary pressures.