BHC plan high-value projects to rebuild profits
Aims to deliver 1, 680 Housing Units in two years
After experiencing a huge dent in their profits for the 2022/23 financial year, Botswana Housing Corporation (BHC) are eyeing much bigger numbers this time around.
The parastatal expect to see the Pulas build-up as they commence on a number of high-value projects around the country.
The last financial year saw BHC rake in P23 million in profit after tax, a sizeable drop from the P64 million recorded the previous year.
They were able to generate total revenue of P553 million, a 21 percent decrease from the P702 million reported in 2021/22.
The dwindling figures were blamed on a decline in sales revenues, and external projects contract income with an aggregate reduction of P201 million.
“This decline in profitability was influenced by an overall increase in operating expenses largely driven by high inflation. Depreciation and amortization charges also went up due to adjustments performed during the period under review putting more pressure on profitability,” read the audited financial results from the corporation.
BHC is, however, in the process of starting a number of high-value projects, which is expected to help revenues streams recover going forward.
The rental side of the business is also picking up promisingly, with rental adjustments and new stock – 686 houses were delivered under the Self-Help Housing Agency (SHHA) scheme – resulting in rentals increasing to P280 million, a P40 million rise from the previous year.
The total rental stock at the end of 2022/23 stood at 9, 961 units, geographically spread across Botswana’s major towns and peri urban areas.
There were also a further 54 SHHA houses at various stages of construction, with all expected to be delivered in the next financial year, and an additional 470 SHHA houses set to be built throughout Botswana.
Further, BHC plans to start work on 1, 256 units across the country during the 2023/24 financial year, with projects scheduled for: Gaborone, Francistown, Maun, Kazungula, Pilane, Nata, Tati-Siding, Sese, Rakops, Palapye and Letlhakane.
These are expected to be delivered at various times in the next two years.
“With the corporation implementing its two years transitional plan from the year 2023 to 2025, expectation is to deliver a total of 1,400 housing units in various locations across the country.
“Based on current projections by major economic institutions locally and internationally the corporation expects the local economy to rebound during this period. These projections are also buoyed by the government’s drive to expedite the implementation of infrastructure developments which is likely to positively impact some of the corporation’s major revenue streams coming from its third-party customers,” state BHC confidently.