Botswana Housing Corporation (BHC) has urged for reforms to fortify the Self-Help Housing Agency (SHHA) programme, cautioning that persistent loan defaults by beneficiaries are eroding one of the nation’s cornerstone affordable housing efforts, even as project delivery remains robust.
The Corporation’s 2024/25 Annual Report has noted that SHHA began in 1973 as a revolving fund, designed so that loan repayments would fuel new housing for future applicants. Yet, ongoing defaults have drained the model’s strength, pushing the scheme to depend more on government budgets and hampering BHC’s ability to plan and deliver homes with certainty.
BHC says reviving and strengthening the revolving fund remains the most sustainable long-term solution.
The Corporation highlighted that 96 percent of SHHA turnkey housing projects reached completion in the past four years, crediting this success to sharper project oversight, proactive risk strategies and more resilient delivery systems. Between the financial years 2021-2025, out of 2747 target, 2645 have been delivered.
“Repayment defaults have placed pressure on the fund’s ability to operate independently, resulting in reliance on government fiscal allocations. This creates unpredictability in planning and delivery,” the report states.
Despite this operational success, financial sustainability remains the programme’s biggest challenge.
“Repayment defaults have placed pressure on the fund’s ability to operate independently, resulting in reliance on government fiscal allocations. This creates unpredictability in planning and delivery,” the report states.
To address the challenge, BHC is engaging Government on alternative funding models while advocating for stronger loan recovery mechanisms and initiatives that improve beneficiaries’ ability to repay, including skills development and support for home-based businesses.
The Corporation has also introduced a comprehensive stakeholder communication framework aimed at improving collaboration, accountability and confidence in the delivery of turnkey housing projects.
Acting Chief Executive Officer Sekgele Ramahobo in his statement on the report indicated that the past financial year showcased the Corporation’s resilience, even as it navigated inflation, soaring construction costs and global supply chain snags.
“Our commitment to delivering quality, affordable and sustainable housing remained unwavering, and I am proud to present a year in which the Corporation maintained steady progress while laying a stronger foundation for future growth,” he said.
Ramahobo said BHC had maintained steady performance across its sales and rental portfolios while improving project execution through stronger procurement systems, enhanced contractor management and tighter internal controls.
Looking ahead, he said the Corporation would prioritise affordable housing delivery, digital transformation, improved revenue collection and stronger financial management.
Board Chairperson Boitsheko Vanessa Ntshingane acknowledged that the economic environment had placed considerable pressure on both the Corporation and the country’s housing sector.
“The financial year 2024/2025 proved to be exceptionally challenging, both domestically and globally.”
She said the prolonged downturn in the global diamond market had constrained national revenues, increased demand for affordable housing and driven up operating costs through imported inflation and higher utility prices.
Ntshingane revealed that the Corporation posted an unaudited pre-tax loss of about P102 million for the year ending 31 March 2025, a setback driven by higher impairments on rental receivables, escalating operational and capital costs, shrinking margins on some projects and sluggish sales.
Even so, BHC remains steadfast that revitalising the SHHA revolving fund, coupled with stronger loan recovery and creative financing, will be key to restoring long-term sustainability and speeding up delivery under Botswana’s national housing agenda.
