Botswana Housing Corporation (BHC) has committed to deliver 1500 housing units annually under various housing schemes during the duration of its 2018 – 2023 strategic plans. “On the commercial housing space 1800 housing units are to be delivered annually to reduce shortage of accommodation in the country. Some of these properties will be delivered in partnership with other parties and will incorporate alternative building technologies,” said Chief Executive Officer Reginald Motswaiso in the recently published financial results for the corporation for the period ended 30 September 2017. During the period under review, BHC delivered 600 houses under Self Help Housing Agency (SHHA) scheme and 313 houses under Public Officers Initiative (POHI). The corporation says post the reporting period, 900 SHHA houses and 152 houses POHI were at different stages of construction and are expected to be delivered before the end of the financial year. “The 372 Installment Purchase Scheme IPS) and Youth housing units are expected to be delivered in the next financial year,” said Motswaiso in the statement, further adding that on the commercial side of business, 132 units are expected to be delivered by year end in Gaborone and Jwaneng. It is reported that as the end of reporting period, 473 units were at different stages of construction and expected to be delivered by next financial year. During the six month period which is currently under review, BHC has seen its revenue go down by 36 percent to P115 million when compared with P180 million recorded in the same period last year. The decline in revenue is attributed to sales revenue which decreased by P72 million.
Motswaiso said the underperformance on sales revenue was mainly caused by a bulk sale to a major customer that did not go through in the first half as expected and the sale is expected to be closed by end of the third quarter. The rental income which is the second major revenue stream for the corporation has remained flat at P88 million compared to the same period in the previous year. “This income line has not declined despite the non-escalation of rental in the last 13 years. Management periodically reviews the rental mix and replaces older properties with new ones which are leased out at rental market,” said the BHC chief executive. The third revenue stream for BHC – which is income from professional fees – were P14 million, an increase of 43 percent when compared with the same period last year. Professional fees income accrued through managing projects on behalf of third parties using the corporation technical staff. This revenue stream is considered key to BHC’s income diversification strategy going into the future. The corporation said on the expenditure side of business; employee expenses went down by 29 percent to P49 million as the efficiencies brought about by the reorganisation of the business continue to pay off. Even though there was a decline of 36 percent in revenue, Motswaiso said, the combined saving in employees expenses and savings in other expenses contributed significantly to the increase in the corporation’s profitability. BHC recorded a profit after tax of P17.3 million for the period under review – an increase of P14.6 million compared to P2.7 million in 2016.