Q: Kindly give us an overview of the Botswana Housing Corporation (BHC) and its mandate.
A: Botswana Housing Corporation is a parastatal under the Ministry of Transport and Public Works. The Corporation was established by an Act of Parliament of 1971. In brief, the Corporation’s mandate as outlined under section 14 of the BHC Act is as follows: –
- a) To provide for the housing, office and other building needs of the government and local authorities.
- b) To provide for and to assist and to make arrangements for other persons to meet the requirements of paragraph (a).
- c) To undertake and carry out and to make arrangements for other persons to undertake and carry out building schemes in Botswana.
Effective from 1st April 2012, the Corporation’s mandate has been expanded in accordance with Presidential Directive Cab 20 (B)/2010. The directive pronounced that all Government housing implementation programmes be transferred to BHC to operate as the Government’s Single Housing Authority (SiHA). In compliance with the directive, BHC is as of 1st April 2012 responsible for the construction of turnkey SHHA projects as well as District Housing and other housing programs pronounced by the government from time to time such as the Public Housing Initiative and Youth Housing Initiative.
Q: How does the Corporation cater to the diverse housing needs of different socio-economic groups in Botswana to alleviate the shortage of accommodation?
A: The Corporation undertakes demand surveys for every place wherein it plans to build. This effective demand survey is thoroughly executed in that it reaches representative populations of the various societal strata per the target geographic areas. The survey provides insights into the demand patterns and property trends in the target areas and informs the Corporation on when and what to build as well as the volume of the proposed development.
Q: How do you balance providing affordable housing and making a profit as an organisation?
A: We subscribe to the philosophy of ‘people first,’ which emphasises the need to serve people before any form of surplus. It should be noted that the Corporation does not receive subventions from the government but raises funds from the capital markets through bonds to finance new developments. This business model calls for the Corporation to build and dispose of products in a manner that allows it to recover the cost of financing and generate some surplus to stay afloat. The surplus is capped at an average of 10 percent; this approach is the main enabler of business continuity and the Corporation’s ability to continue developing more properties to house the nation.
Q: How does BHC support the housing needs of Botswana’s young people, particularly those seeking to supplement their income through property investments?
A: The Corporation has in some target projects reserved a certain percentage of properties developed for young people to buy. The quota reserved for the youth has always been met with enthusiasm. There is a quota of 25 percent reserved for the youth at both the Tsholofelo 372 and 264 projects where 74 percent of the units were sold to the youth, a figure that was way above the quota.
The Corporation will continue with the initiative to reserve a quota for the youth, the next project is 114 high-density units in Block 7 Gaborone. The project started in March 2024 and like the other two previous projects, 25 percent of the project will be reserved for the youth. This approach is believed to activate interest and empower the youth with homeownership.
Q: Are there any financing options that BHC offers to prospective homeowners?
A: The Corporation has a Tenant Purchase Scheme, which essentially allows tenants to purchase their rented units directly through the facility offered by the Corporation without the need to secure a mortgage from a financier. In this facility, customers are allowed to make amortised monthly down payments to the Corporation over a period not exceeding 25 years. The monthly payments are determined by the value of the housing unit purchased.
Q: Is there any collaboration with financial institutions to make home loans more accessible for Batswana?
A: BHC has a fruitful relationship with various local financial institutions to make loans accessible as well as share plans regarding upcoming developments. This allows financiers to make plans on how best to make home loans accessible and affordable to potential homeowners.
Q: What are the main challenges BHC faces in securing adequate funding for housing projects?
A: The biggest challenge is multiple priorities where different projects compete for the same limited funds. The Corporation has the responsibility to develop in diverse localities and for different sets of customers including the Government, state-owned enterprises and the public.
Q: How is the Corporation addressing these funding challenges to ensure the continuity and expansion of its housing programs?
A: We are currently in discussions with the parent Ministry to try and come up with solutions, which could in the long run see traction in the area of social housing funding.
Q: What are the long-term plans for addressing the housing needs of Botswana’s growing population?
A: Our long-term plans hinge on serving the unserved market, which is the low-income bracket. We are also cognisant of the need for accommodation in the newly established districts, some of which we are currently developing such as Boteti, Kgalagadi and others. We are also engaging various stakeholders around many districts in Botswana to establish demand patterns to take developments there.
Q: What are some of the major housing projects BHC has in the pipeline?
A: The following are projects planned for the 2024/25 financial year:
Tsabong 30 Letlhakane 72
Kazungula 212 Rakops 30
Nata 14 Maun 100
Phakalane 13 (Flats) Block 7 318 (Flats)
Pilane 200
