Botswana Housing Corporation (BHC) has reported a net loss of P104.6 million for the financial year ended March 31, 2025, reversing the previous year’s profit of P29.2 million, as substantial impairment charges and rising maintenance costs eroded margins despite robust revenue growth.
Revenue rose 41% year-on-year to P739.5 million from P525.2 million, supported by strong third-party construction activity and resilient rental income. However, operating performance was weighed down by a P219.2 million impairment expense, up from P26.6 million the prior year, mainly linked to overdue rent receivables from one of the corporation’s major stakeholders.
“This significant impairment adjustment is a once-off provision reflecting prudent risk and recoverability assessments,” the board said in a statement accompanying the results.
Profitability pressures
BHC’s gross profit climbed 19% to P441.4 million, but the gross margin narrowed to 59.7% from 70.5% in 2024. Operating expenses rose 17% to P412.5 million, driven by higher maintenance costs and employee benefits, which together accounted for nearly two-thirds of operating expenditure. The result was an operating loss of P116.8 million, compared to an operating profit of P23.7 million in the prior year.
The impairment losses and cost increases dragged the corporation’s net margin to -14% from 6% a year earlier.
Revenue composition
Rental income rose 15.8% to P392.2 million, with residential units contributing the bulk at P387.1 million. Income from construction and management contracts nearly doubled to P336.8 million, while housing sales amounted to P10.5 million, reflecting weak consumer purchasing power.
Third-party construction now accounts for 46% of BHC’s revenue, rentals 53%, and housing sales 1%.
Financial position
BHC’s total assets declined 8% to P2.61 billion, while equity slipped 6% to P1.54 billion. Borrowings stood at P546.2 million, with most of the debt classified as current due to a listed bond maturing in December 2025. The corporation noted that refinancing this maturity is a key focus to maintain liquidity.
Inventories rose to P709.6 million as several housing projects neared completion, while cash holdings fell to P467.5 million from P815.2 million the prior year.
Housing delivery and outlook
During the year, BHC delivered 712 housing units under the Self-Help Housing Agency turnkey scheme and plans to deliver another 605 social housing units under the new Bonno programme in the current year. The corporation also has 574 units under construction in various towns, including Gaborone, Kazungula, Palapye, Rakops, and Tsabong.
To accelerate delivery, BHC said it would partner with the private sector as part of its long-term goal of delivering 100,000 housing units over its current strategic period. The plan also targets doubling revenue to P1.5 billion and allocating 30% of spending to marginalised groups.
“The current loss, which was mainly due to a once-off impairment, will be averted,” Acting General Manager Pascaline Sefawe and Board Chairperson Boitsheko Ntshingane said, adding that BHC remains financially resilient with a strong property base and stable rental income.