Business

WUC extends debt amnesty as arrears hit P1.6bn

REACHING OUT: WUC is battling to recover arrears
 
REACHING OUT: WUC is battling to recover arrears

The 11-week initiative announced by Customer Care and Information Director Goitseone Tshiamiso started running from December 8, 2025, to February 28, 2026, and focuses on domestic households, small businesses, churches, community groups, and NGOs.

According to official WUC figures, domestic households account for P674 million of the outstanding debt, whilst small businesses owe P168 million. Government entities and councils excluded from the amnesty owe P695 million and P89 million, respectively, bringing total arrears to P1.6 billion.

Phase 1 of the amnesty saw WUC collect P119 million from households, contributing to the P176 million recovered overall. Phase 2 now aims to deepen collections amongst the most financially strained customers, particularly families and small traders facing prolonged cash-flow pressures.

The utility estimates that arrears are spread across roughly 120,000 household plots, with at least 16,000 households urged to step forward during the amnesty window. Eligible customers can qualify by paying 50% of their outstanding balance upfront, with the remainder settled through a structured payment plan.

Crucially, the amnesty applies to debts billed up to December 2024, covering active, inactive, and closed accounts. Upon payment of the initial deposit, WUC will reconnect disconnected services, offering immediate relief to affected households and enterprises.

However, exclusions are firm. Government ministries, councils, state-owned enterprises, financial institutions, chain stores, franchises, and construction firms do not qualify.

Tshiamiso emphasised that the amnesty is designed not merely as debt relief but as an economic reset. Clearing arrears, he noted, frees up working capital for stock purchases, wages, and business expansion at a time when operating costs remain elevated.

Financials for the troubled parastatal show that WUC posted pretax losses of P189.2 million for the half-year ended September 2025, an increase of 26% from the prior period, despite higher revenues.

Brief financials posted to the Botswana Stock Exchange recently 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.