The Botswana Housing Corporation (BHC) has returned to profitability for the half year ended 30 September 2025, recording a profit after tax of P32.2 million compared to P9.7 million in the same period last year.
The turnaround comes despite a sharp decline in revenue, which fell by 52% to P170.5 million as government-funded construction projects and rental subsidies that boosted prior-year results did not recur this year.
BHC attributes the improved bottom line to aggressive cost-containment measures and stronger arrears collection. Cost of sales fell by 85%, while operating expenses dropped by 10% as the Corporation tightened maintenance schedules and reduced non-essential spending. A reversal of impairment expenses amounting to P13.6 million, compared to an impairment charge of P32.4 million last year, also provided a significant boost to profitability. Management said the reversal followed payments received from a major stakeholder and the impact of stricter collections efforts.
Operating profit rose sharply to P30 million from P6.8 million in the previous period, while joint-venture projects continued to perform well, contributing P12.2 million to earnings. The overall result represents a strong recovery from the full-year loss of P104.6 million reported in March 2025.
BHC’s balance sheet remains solid, with total assets at P2.66 billion and equity of P1.58 billion. Investment properties, which form the backbone of the Corporation’s income-generating portfolio, stood at P1.21 billion. Housing inventories increased to P828.2 million as several projects moved closer to completion, while cash and cash equivalents declined to P405.5 million because of project-related expenditure. Borrowings amounted to P529.2 million, most of which fall due in December 2025, prompting a focus on refinancing in the months ahead.
The Corporation reported steady progress under the Bonno National Housing Programme, which was rolled out alongside BHC’s new five-year strategy. The programme aims to accelerate housing delivery across the country, and BHC has already initiated 4,743 units in partnership with the private sector. During the reporting period, 1,274 units were under construction, with several expected to be completed within the current financial year. These deliveries are expected to support sales and rental income going forward.
Looking ahead, BHC plans to intensify efforts to monetise inventories, strengthen collections, and improve liquidity as it prepares for upcoming debt maturities. The organisation also intends to ramp up marketing to drive the sale of older investment properties, which could reduce maintenance costs while supporting cash flow. Management and the Board reiterated their commitment to supporting government’s housing objectives, noting that private-sector collaboration will remain central to meeting the long-term goal of delivering 100,000 houses and doubling revenue over the next five years.