WUC losses deepen despite higher revenues

Mbongeni Mguni | Thursday January 8, 2026 15:00

 

Sink or swim: The WUC has suffered financial difficulties largely since adopting the duties of the former Water Affairs Department

Brief financials posted to the Botswana Stock Exchange this week show that the losses largely stemmed from higher net depreciation, which rose to P220.5 million from P121.6 million. No reasons were provided for the higher provisions for depreciation, but these appear related to changes in the value of property, plant, and equipment.

According to the results, the WUC raked in revenues of P1.25 billion in the six months between April and September 2025, compared to P1.1 billion over the corresponding period in 2024. Gross profit was 26% higher at P342 million, whilst the operating loss was P9.6 million, an improvement from P91.4 million in the prior year.

However, the provisions for depreciation weighed on the final results, widening the WUC’s pretax losses.

The corporation has struggled for profitability over the years, due largely to non-cost-reflective tariffs and ballooning arrears owed by various segments of customers. In the six months to September 2025, WUC’s trade receivables, a category that includes arrears owed by customers, grew to P1.6 billion from P1.2 billion in the prior corresponding period. The corporation has relaunched a debt amnesty for customers, aimed at boosting recoveries.