Land Boards threaten to repossess BHC land
Lewanika Timothy | Monday July 27, 2026 06:00
The warning, disclosed in BHC’s 2025 Annual Report, comes as the state-owned housing developer battles to convert its land holdings into active projects within the timelines required by land authorities.
“Due to the non-development of acquired land, for instance, (Kanye and Molepolole) and compliance with land covenants, the land authorities have threatened to repossess the land,” management states in the annual report. The country continues to wobble in a housing crisis, where housing affordability has eluded the reach of the masses due to soaring land prices and expensive construction costs, making the conversion of land banks to affordable housing units a matter of urgency for the country.
The corporation’s land bank represents the foundation of its future housing programme, The corporation warned that losing the affected land parcels could disrupt planned developments. “This poses risks to the corporation’s project pipeline and strategic plans,” executives shared.
The development comes against the backdrop of Botswana’s long-standing challenge of balancing demand for housing with the availability and utilisation of serviced land. Land Boards, which administer tribal land on behalf of communities, allocate land subject to conditions requiring beneficiaries to develop it within agreed periods.
These conditions are intended to ensure that allocated land contributes to economic and social development rather than remaining idle. Failure to meet development obligations can result in land authorities taking steps to withdraw allocations.
The land repossession threats come at a time when BHC is already reviewing aspects of its operating model following growing strain in its relationship with its biggest client, the Department of Housing (DOH). The corporation disclosed in its annual report that the existing arrangement, where BHC funds projects upfront and is reimbursed upon completion, has placed pressure on its cash flows, with delayed payments contributing to mounting arrears and affecting project execution.
Management is now seeking to address structural issues within the model, including improving project initiation criteria, strengthening cash flow planning and engaging stakeholders to ensure that future housing developments are matched with the necessary funding arrangements.
The developments highlight the broader pressures facing BHC as it seeks to maintain its role as the government’s housing delivery agency while operating within an environment of constrained resources, delayed payments and increasing expectations for faster housing delivery. The corporation said it is now reassessing how it selects and develops land to avoid similar challenges.
“The corporation is reviewing the criteria used for land development, prioritising the timely initiation of projects on allocated land to safeguard tenure and actively continuous engagement of land authorities,” management said.
The review could signal a shift in BHC’s approach towards land banking, with greater emphasis likely to be placed on acquiring land that can quickly move into development rather than holding large undeveloped reserves. The issue is particularly significant given BHC’s mandate under the Botswana Housing Corporation Act to provide housing, develop residential areas and manage properties in support of national housing objectives.
The corporation’s ability to deliver on that mandate depends heavily on access to land. Any reduction in its land bank could affect future projects at a time when government continues to rely on BHC to support housing delivery.
The disclosure comes as BHC faces several operational pressures, including financial losses, project delays and cash flow constraints. The corporation reported an unaudited pre-tax loss of approximately P102 million for the year ended March 2025, citing higher impairments, rising costs and weaker sales performance.