CEDA Raises Prime Lending Rate to 10.76%

The Citizen Entrepreneurial Development Agency (CEDA) has announced a sharp increase in its Prime Lending Rate (PLR), raising it from 6.76% to 10.76%. 

The new rate will take effect on 24 November 2025, following approvals from the Ministry of Trade and Entrepreneurship.

In a statement, the agency said the adjustment aligns its pricing with prevailing market conditions and is necessary to maintain financial sustainability while delivering on its development mandate.

Interestingly, the decision by CEDA to hike up the PLR comes a few weeks after the Bank of Botswana's Monetary Policy Committee (MPC) directed banks to not hike up their PLR. This comes after the Bank increased the Monetary Policy Rate (MPR) from 1.9% to 3.15%.

Despite the higher PLR, CEDA affirmed that it will continue offering concessional rates for priority sectors, including agriculture, manufacturing, tourism, technology, and the creative industry, as well as products targeting women and youth entrepreneurs.

The agency reiterated its commitment to supporting citizen entrepreneurship and ensuring that its financing products remain accessible and relevant in advancing the national economic transformation agenda.