The housing authority is pinning its recovery on a new five-year strategy and the Bonno programme after posting a P102 million pre-tax loss.
GAZETTE REPORTER
The Botswana Housing Corporation (BHC) will prioritise implementation of its 2025–2030 strategy as it seeks to rebuild its finances and expand housing delivery under its mandate as the country’s Single Housing Authority (SiHA).
Recovery Plan
In the BHC 2025 Annual Report, Board Chairperson Boitsheko Vanessa Ntshingane said the Corporation’s immediate focus would be execution of the new five-year strategy and support for the Government’s housing agenda through the Bonno National Housing Programme.
“Our primary focus will be the rigorous implementation of the new 2025–2030 Strategy, leveraging our role as the Single Housing Authority (SiHA) to drive the Government’s housing agenda, particularly through the ambitious Bonno National Housing Programme,” she said.
Ntshingane said BHC expected conditions to improve during the latter half of the coming financial year, supported by renewed activity in the non-mining sector.
“We anticipate recovery in the latter half of the coming financial year, supported by renewed activity in the non-mining sector, which we are strategically positioned to support through infrastructural development,” she said.
Financial Strain
Ntshingane said the Corporation’s unaudited results reflected a difficult financial year.
BHC recorded a loss before tax of about P102 million for the year ended 31 March 2025. This represented a deterioration of about P144 million, or 343 percent, compared with the previous year.
According to the report, the weaker performance was driven by increased impairments on rental receivables, rising operational and capital costs, margin erosion in some housing-for-sale segments, slower sales volumes and delayed project deliveries.
Despite the loss, BHC retained a substantial asset base. The report states that total assets stood at P2.85 billion as at 31 March 2024, up 3 percent year-on-year. Investment properties were valued at P1.3 billion, accounting for about 45 percent of total assets, while housing inventories increased by 17 percent.
“We will be working with Management to restore margins, strengthen cash flows and tighten cost control, to ensure the Corporation remains financially sustainable and able to fulfil its mandate,” Ntshingane said.
Housing Delivery
The Corporation completed 1,420 housing units during its Two-Year Transitional Performance Plan for 2023–2025, exceeding its target of 1,400 units.
However, the report says project implementation continued to face shortages of serviced land in high-demand areas and delays in connecting water and electricity services.
Ntshingane said BHC had strengthened engagement with utility providers and planning authorities while making significant progress in planning and the initial implementation of the Bonno National Housing Programme.
Systems Upgrade
The Corporation also strengthened its Project Management Office framework, expanded facilities management services to diversify revenue and invested in digital systems to improve tenant management, internal controls and customer service.