The paper examines trends in household savings in Botswana, including possible factors that
influence savings. It further investigates the changing patterns of non-financial savings by
households; for example, the switch from livestock to other assets, either physical or
financial. Borrowing activities of the household, both in the formal financial sector and the
non-formal sector, are also examined. This will, among others, address issues of traditional
social arrangements where groups of people informally team up and engage in some
savings/lending activities, which are mainly funded by household savings. In general,
households in Botswana are net borrowers with respect to the banking system, but are net
savers when contractual savings are included. Although not easily quantifiable, there
appears to be significant use of informal savings and borrowing schemes by households.
The paper finally outlines some statistical challenges associated with monitoring household
savings in Botswana.