The Botswana Housing Corporation (BHC) has returned to operating profitability for the financial year ended 31 March 2026, buoyed by lower impairment expenses and gains from property sales.
However, a 42.2 percent decline in revenue highlights the need to strengthen its core housing and rental operations to sustain long-term financial performance.
In a joint financial results statementt released earlier this week, Board Chairman Othusitse Mbeha and Acting Chief Executive Officer Professor Selinah Busang reported revenue and rental income of P427.5 million, down 42.2 percent from P739.5 million in financial year 2025.
Rental income declined to P279.1 million from P392.2 million, while revenue from construction and management contracts fell to P141.7 million from P336.8 million. Outright housing sales contributed P6.7 million, compared with P10.5 million in the previous year.
Rental income declined to P279.1 million from P392.2 million, while revenue from construction and management contracts fell to P141.7 million from P336.8 million. Outright housing sales contributed P6.7 million, compared with P10.5 million in the previous year.
The financial statement show that, “while the decline in revenue reflects the challenges experienced during the reporting period, our focus remains on strengthening the Corporation’s financial resilience and ensuring that our investments translate into sustainable housing solutions for Batswana.”
BHC reduced operating expenses, excluding impairment, to P361.5 million from P412.5 million. Repairs and maintenance costs fell to P78 million from P110.7 million, while employee benefit expenses remained relatively stable at P170.6 million.
Net impairment expenses dropped significantly to P16.9 million from P219.2 million in FY2025. Gains of P95.6 million from investment property sales also supported the operating result. However, excluding these gains, the Corporation would have recorded an operating loss of approximately P67.6 million, underlining the importance of generating stronger returns from its core operations.
Housing inventories increased by P274.6 million to P984.2 million, comprising P706.5 million in housing under construction and P230 million in completed houses. The growing pipeline presents an opportunity to expand housing delivery and generate future income, provided projects are completed and converted into sales or rental assets.
“Completing projects efficiently, strengthening rental collections and maintaining disciplined cost management will be critical to improving cash generation and sustaining our mandate,” Busang said.
“Completing projects efficiently, strengthening rental collections and maintaining disciplined cost management will be critical to improving cash generation and sustaining our mandate,” Busang said.
The Corporation’s total assets stood at P2.688 billion, with equity of P1.593 billion. However, cash and cash equivalents declined to P354.5 million from P467.5 million, while net operating cash outflows reached P192.9 million. These movements highlight the importance of improving collections and aligning development expenditure with available funding.
Looking ahead, management is pursuing cost-containment measures, liability restructuring and engagement with financiers on refinancing options.
