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Botswana real estate sector flagged as dirty money hotspot

Higher and higher: Researchers believe the skyrocketing valuations and transactions in real estate are hiding dirty money activities PIC: MORERI SEJAKGOMO
Higher and higher: Researchers believe the skyrocketing valuations and transactions in real estate are hiding dirty money activities PIC: MORERI SEJAKGOMO

An investigative assessment by local authorities indicates that a growing money laundering scheme is hiding underneath the country’s surging real estate property valuations, helped by poor regulation and opaque transactions, with dirty money flows estimated at P1.1 billion.

A recently released National Money Laundering and Terrorist Financing Risk Assessment report by the Non-Banking Financial Authority Regulatory Authority (NBIFIRA) uncovered that Botswana’s real estate sector is being exploited as a haven for washing dirty money, buried under the sector’s growing valuation and demand, especially in urban areas such as Gaborone.

The warning comes at a time when property values, particularly in urban centres such as Gaborone, have surged on the back of sustained demand, limited housing supply and the growing perception of real estate as a store of value. Over the years, property has become one of the preferred asset classes for both institutional and private investors, offering relatively stable returns amidst a volatile economic environment.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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