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Why BHC houses are not selling

Low salaries make BHC properties unattractive

The Chief Executive Officer (CEO) of the Botswana Housing Corporation (BHC), Mr Reginald Motswaiso has unravelled the Corporation’s mystique of providing affordable housing and also ensuring that they remain profitable.


Motswaiso’s statement in the BHC 2014 annual report attempts to accommodate the fact that the Corporation operates in an environment where the majority of its prospective customers are earning low salaries, mortgage packages are not affordable, and construction costs are high.


Motswaiso has indicated that BHC has faced a challenge in disposing of its houses because of the global economic slowdown which led to marginal salary increases over a number of years.


The CEO indicated in the BHC annual report that in the midst of low salaries, construction costs had continued to increase at a much faster pace hence the net effect of this has been reduced ability by some of the Corporation’s potential customers to afford its products. “In recognition of this affordability challenge, the Corporation adjusted its operating margins on its new developments downwards,” he said.


The BHC Board chairperson, Dr Bolelang Pheko indicated in her statement that the slow economic recovery had a negative impact on the BHC as government scaled down on new construction projects. She also noted that the prospective BHC customers were also affected as they struggled to afford the houses.


Dr Pheko said in some cases, prospective customers prioritised other basic necessities like food and clothing over home ownership.


She said it is evident that the BHC customers have not benefited from the low interest rates currently prevailing in the market due to issues of affordability of our houses. However the Board chairperson noted that it is expected that as the economy recovers and economic activity increases, BHC will see an increase in demand of its properties, especially in the urban areas where there is shortage of accommodation.


“Despite the economic challenges BHC through its strong leadership, has continued to be financially sustainable. The Corporation remained profitable as costs are closely managed to ensure that the revenues are not eroded.”
Dr Pheko further wrote that they recognise that for BHC to reach out to as many Batswana as possible their products should be reasonably priced.


“This has resulted in the Corporation reducing its profit margins on products in some areas in order to make houses attractive to buyers. We have however not lost sight of the fact that we have to recover our costs in order to be able to remain sustainable and meet our obligation as they become due,” she observed.


Meanwhile, the CEO, Mr Motswaiso indicated that in its effort of trying to empower Batswana with homeownership, the BHC had targeted to sell some 1036 housing properties during the 2014/14 financial year. The properties concerned were located in various parts of the country but principally in Phakalane.

However the Corporation only managed to sell 290 housing units. The main reason for the shortfall in the number of housing units sold was the sewerage capacity problem at Phakalane project.


According to the annual report, the BHC rental income stream remained virtually unchanged at P186.6 million, compared to P187.7 million in the 2012/13 financial year.


“The stagnation in the rental income stream is mainly attributable to the fact that the Corporation has not increased its rental charges since 2004. Whilst the rentals have remained stagnant, the costs related to the administration and upkeep of the properties making up the rental portfolio keeps on increasing year after year due to upward push exerted by inflationary pressures. As an illustration of this upward push, the cost of maintaining the rental portfolio increased from P35.5 million in 2012/13 to P39.5 million, an increase of 11 percent.”


Currently the BHC says it is pushing the strategy of building more and more houses for sale and they describe it as ‘paramount’ to their existence because they have been mandated to house the nation. “In order to accelerate homeownership drive, BHC has embarked on the sitting tenants campaign this financial year, which is intended to encourage sitting tenants to purchase the properties they are currently leasing in order to realise the value in this properties.”

However this has faced its own challenges, affordability levels of the Corporation’s existing customers is challenged compared with the mortgages the banks can offer. BHC hopes that the campaign will increase homeownership.

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BAD WEEK FOR MANCHESTER CITY

6th February 2023

After falling to close the gap on Arsenal by losing to a record breaking goal by Kane at the Tottenham stadium.Manchester City now find themselves being charged by the Premier League with more than 100 breaches of its financial rules following a four-year investigation.

According to BBC , it has referred the club to an independent commission over alleged rule breaches between 2009 and 2018 , and also that Man-city has not been co-operating since the investigation which started in 2018 .

BBC further states that The commission can impose punishment including a fine , points deduction and expelling the club from the Premier league.

The alleged breaches include ,  breaching rules for requiring full details of manager remuneration,from 2009-2010, to 2012-2013 seasons when Roberto Mancini was in charge . Also player remuneration between 2010-2011 and 2015-2016.

The Premier league stated that City breached rules related to UEFA regulations , including Financial Fair Play , from 2013-2014 to 2017-2018 ,as well as Premier League rules on profitability and sustainability from 2014-2016 to 2017-2018

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South Korean Embassy aids students living with disabilities

6th February 2023

South Korean Ambassador in South Africa has donated e-learning equipment through Botswana Red Cross Society (BRCS) to Tlamelong Rehabilitation Centre in Tlokweng recently, in a bid to fine tune the student’s textile skills.  

When talking at the handing over ceremony, Chull-Joo Park, said they agreed with BRCS to give out e-learning equipment to better the training skills of students living with disabilities.

“With the Information and Communication Technology (ICT) equipment and job training skills, we will be able to help the students living with disabilities to do e-learning and to better their education and job training,” said Chull-Joo Park.

It was revealed that the South Korean Embassy approached BRCS with the intent to donate equipment and educational material that includes an embroidery machine, photo copier machine, tablets and interactive boards to be utilized by the trainees.

The industrial printer is a machine that works with embroidery machine to print designs for clothing and it will enable the learners to have more material available to them to facilitate learning.

Through this embroidery machine, students will be exposed to better technologies which ultimately improve the quality of materials they produce. It will also allow students to learn business skills and run profitable ventures.

Smart board gadgets will provide the students with an elevated learning process to be fostered by e-learning. The gadgets provide a more visual element to the learning process, which in turn improves learner mental retention.

Tlamelong Rehabilitation serves the marginalized and underserved less privileged persons living with disability in Botswana. The center offers boarding services, vocational training, social services, physiotherapy and rehabilitation services for young people living disabilities aged 18-35 from across the country over a period of two (2) years per cohort which has a maximum intake capacity of 35. BRCS through International Federation of the Red Cross and Red Crescent Societies (IFRC) have managed to create great working synergy with the South Korean Embassy in Pretoria based in South Africa to support or augment the National Society’s Rehabilitation Centre’s learning challenges.

For his part, BRSC Secretary General Kutlwano Mokokomani said they are delighted to convey their gratitude as BRSC to the South Korean Embassy for donation and they look forward to an enduring partnership for such worthy causes.

“South Korean Embassy’s great gesture will enable trainees to thrive, to fulfil their dreams to become a reality as this equipments will go a long way in creating great impact in the lives of trainees and their families. We wish to convey our sincere gratitude to the South Korean Embassy for their noble gesture of donating the E-learning equipments.”

BRCS offers rehabilitation services spread across three (3) areas in Botswana being Sefhare Stimulation center in Sefhare, Tshimologo stimulation center in Francistown and Tlamelong rehabilitation center in Tlokweng.

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DIS alleges plot to kill Masisi hatched in South Africa

6th February 2023

A dispute is brewing between Botswana and South Africa intelligence agencies over alleged mercenary training camps discovered in South Africa by the Directorate of Intelligence and Security (DIS). 

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