Financing crops, cattle and farm machinery in Botswana
In Botswana, farmers finance their crops mainly through Temo Letlotlo, a public programme whose seasonal loans and tractor component are run by the National Development Bank, and their livestock or poultry projects through CEDA agricultural products and banks.
Temo Letlotlo, successor to ISPAAD
Temo Letlotlo replaced the former ISPAAD programme, which relied heavily on subsidies, to support cereal production and food security. The stated aim is to move from free assistance towards more sustainable financing that producers partly repay.
National Development Bank seasonal loans
The National Development Bank processes Temo Letlotlo seasonal loans for seed, fertiliser and ploughing. According to the business press in 2024, farmers cultivating up to one hundred hectares could borrow without providing collateral, a break with past agricultural policy.
Tractors, fencing and interest subsidies
The NDB also runs the tractor and fencing components of Temo Letlotlo, as well as an interest subsidy for farmers not enrolled in the programme. More than ten million pula had been disbursed for tractors by early 2024.
Pandamatenga and large-scale cropping
The clay soils of Pandamatenga, near Kasane, host commercial farms growing sorghum, sunflower and pulses. These producers borrow larger amounts and must plan for the effect of erratic rainfall on both their harvests and their loan repayments.
CEDA agricultural products
CEDA offers financing for livestock and crop production, a revamped poultry product and AdiTsale, which is dedicated to artificial insemination of herds. These products target citizen-owned farms with a business plan costed in pula.
Cattle farming and the Botswana Meat Commission
Cattle remain a pillar of rural life and a social marker. The Botswana Meat Commission, with its Lobatse abattoir, buys part of the national herd, and delays in payment or slaughter weigh directly on the cash flow of indebted farmers.
BAITS tracing and foot-and-mouth zones
Cattle are identified in the BAITS system, a condition for access to export markets. Foot-and-mouth disease control zones, particularly in the north, restrict sales outlets and therefore the amounts a lender is willing to finance.
Livestock and land as collateral
Banks are reluctant to accept cattle or tribal land not converted into a lease as security. A farmer in Kweneng or the Central District often has to provide a salary guarantee or an urban property in order to borrow.
Drought and repayment timing
The semi-arid climate and recurrent droughts make yields unpredictable. A repayment schedule tied to the harvest or the sale of animals, rather than monthly instalments, reduces the risk of default after a poor rainy season.
Horticulture in the Tuli Block
Vegetable growers in the Tuli Block and around Gaborone are investing in drip irrigation and greenhouses. For this equipment, the finance lease described in the guide to leasing in Botswana can complement a CEDA loan.
Paying for rural children's education
Irregular farm income also makes it harder to fund children's studies. The guide to the student loan in Botswana explains government sponsorship, which depends on BGCSE results rather than on the parents' farming income.
Agricultural credit in Zimbabwe
In neighbouring Zimbabwe, where maize and tobacco dominate, contract farming and public input programmes play a major role. The guide to the farmer loan in Zimbabwe lets you compare these models with Temo Letlotlo.
Applying for agricultural finance in Botswana
- Register with the district agricultural office to become eligible for Temo Letlotlo components.
- Prepare a cropping or livestock plan with areas, herd numbers and a budget in pula.
- Submit a seasonal loan application to the NDB or a production file to CEDA.
- Provide land documents: a land grant certificate, a farm lease or a title deed.
- Plan repayment around the harvest or the sale of animals to the BMC or the local market.
Sources of agricultural finance in pula
| Scheme | Purpose | Notable condition |
|---|---|---|
| Temo Letlotlo seasonal loan (NDB) | Seed, fertiliser, ploughing | No collateral up to 100 ha under the 2024 rules |
| Temo Letlotlo tractor component | Tractor purchase | Processed by the NDB |
| NDB interest subsidy | Lower loan cost | For farmers outside the programme |
| CEDA agricultural products | Livestock, crops, poultry | Citizen-owned business |
| Bank farm loan | Working capital or equipment | Collateral usually required |
Documents for a farm finance file in Botswana
- Farmer's Omang card
- Registration with the district agricultural services
- Land Board grant certificate or farm lease
- Register of animals identified in BAITS for livestock farmers
- Farm plan and projected budget
- Bank statements or proof of previous sales
Missteps by indebted farmers in Botswana
- Borrowing on monthly instalments when income only arrives after the harvest or the sale of cattle.
- Taking out no insurance and keeping no reserve in case of drought in Kgalagadi or Kweneng.
- Paying a middleman who promises priority enrolment in Temo Letlotlo or a fast NDB loan for a commission.
- Using a seasonal loan for family spending, then running short of fertiliser at planting time.
Lenders to contact
- Letshego Botswana: Botswana subsidiary of the Letshego group, an inclusive lender offering personal loans and digital financial services through its LetsGo app.
- First National Bank Botswana: Botswana commercial bank granting loans to individuals and businesses, regularly publishing its deposit and lending interest rates for customers.
- First Capital Bank Botswana: Commercial bank operating in Botswana offering personal loans to individuals to help finance their personal needs and projects.
- Absa Bank Botswana: Commercial bank in Botswana, part of the Absa group, offering banking services and credit solutions to individuals and businesses.
Temo Letlotlo, NDB and CEDA for farmers
Is Temo Letlotlo a subsidy or a loan?
It is a mixed programme: some components remain grants, but the NDB manages repayable seasonal loans and tractor financing within it. The rules change every season and should be checked with the district agricultural office.
Can a cattle herd be used as collateral in Botswana?
Rarely with a bank, because the value of livestock fluctuates and seizing it is complicated. Farmers instead provide a salary guarantee or an urban property, or use CEDA's agricultural products.
Can non-citizens benefit from these farm programmes?
Temo Letlotlo and CEDA products are aimed at citizens of Botswana. A foreign investor in agriculture generally finances the project with equity, bank loans or a partnership with citizen farmers.
What should a farmer do if drought ruins the harvest?
Contact the lender quickly to ask for rescheduling, supplying reports from the agricultural services. The government sometimes announces emergency measures when drought is declared, but they are not automatic.