Water Utilities Corporation is battling a P554.6 million loss, shrinking cash reserves and heavy customer debt while funding projects aimed at water security and stronger revenue collection.
GAZETTE REPORTER
Water Utilities Corporation (WUC) recorded a net loss after tax of P554.6 million for the financial year ended March 31, 2024, as higher production and operational costs, together with additional legal provisions, weighed on its financial performance.
Costs Bite
WUC CEO Gaselemogwe Senai disclosed the figures at a recent press briefing, where he outlined the corporation’s operational and financial position and its progress towards improving water and sanitation services.
Revenue declined to P2.12 billion from P2.16 billion the previous year, while cost of sales increased to P2.09 billion. Gross profit fell to P28.5 million, while the corporation recorded an operating loss of P643.3 million.
“Management remains focused on strengthening liquidity through improved collections, prudent cost management, and enhanced working capital management,” Senai said.
WUC’s total assets increased 6 percent to P7.80 billion, while total liabilities rose 41 percent to P3.51 billion. Cash and cash equivalents fell from P773.6 million to P184.1 million.
Senai said cost-containment measures, including a recruitment moratorium and controlled travel, accommodation and overtime, could be eroded by the recent 9 percent increase in electricity tariffs.
Water Security
Despite forecasts of a strong El Niño during the 2026/27 rainy season, Senai said Botswana’s water supply remained secure.
“All WUC major dams remain at healthy storage levels, averaging approximately 90% capacity, providing sufficient reserves to meet domestic water demand under current operating conditions,” he said.
WUC has completed the North-South Carrier 2.2 and 2.3 projects, improving water supply security for Gaborone, Greater Gaborone, Lobatse, Kanye, Kweneng, Palapye, Mahalapye and other areas, benefiting approximately 700,000 people across more than 100 villages.
The expansion of the Mmamashia Water Treatment Plant has doubled treatment capacity from 110 million litres per day to 220 million litres.
Service Backlog
WUC has a backlog of 6,595 connection requests nationwide, largely attributed to multi-residential developments and ongoing land allocation initiatives.
Outstanding queries and repairs stand at 45,898, down from 53,000 in April 2026. Gaborone accounts for 26 percent of the outstanding queries.
“The Corporation introduced Instant Quotation initiative in April 2026, designed to accelerate service fulfilment, improve customer experience, reduce operating costs, and strengthen cash flow through immediate quotation and payment processing,” Senai said.
The WUC Contact Centre will begin operating 24 hours a day from September 1, while its website, app and USSD self-service channels are scheduled to be accessible from August 15.
New Revenue
WUC has established Sego Sa Metsi, a wholly owned subsidiary registered with CIPA on June 27, 2026. The company will initially provide engineering consultancy services, with its mandate expected to expand into other government projects and eventually the region.
The corporation has also launched a P500 million programme to roll out 60,000 smart prepaid water meters, which it says will improve billing accuracy, reduce water losses and strengthen revenue collection.
Debt Burden
WUC’s outstanding debt includes P784 million owed by government, P81 million by councils, P648 million by domestic customers and P159 million by business customers.
Water losses currently average 45 percent, with Kanye and Molepolole recording losses of more than 55 percent.