Mmegi

Mounting debt forces BHC to halt projects

Tough choices: BHC executives say the DOH arrangement is weighing on its books PIC MORERI SEJAKGOMO
Tough choices: BHC executives say the DOH arrangement is weighing on its books PIC MORERI SEJAKGOMO

The Botswana Housing Corporation (BHC) has lifted the lid on growing financial strain within government's housing delivery model, revealing that it has suspended more than P16 million worth of projects after payment delays by its biggest client, the Department of Housing (DOH).

The disclosure, contained in the corporation's 2025 Annual Report, shows a growing frustration from BHC over mounting debt owed by the DOH, with the corporation warning that it is increasingly being forced to finance government-commissioned projects from its books, whilst still being owed by DOH, under a model that seemingly exploits BHC, according to the company executives.

Executives in the annual report stated that given the mounting debt owed by DOH, they had no option but to pull the plug on some ongoing projects until the client foots the outstanding bill.

Editor's Comment
Diplomatic relations must be on equal footing

“Let us never negotiate out of fear.But let us never fear to negotiate”– John F. KennedySupport for healthcare, education, skills and infrastructure can improve lives. The reaffirmed commitment to the Mmopane–Block 8 road is welcome for the prospect of better transport links for surrounding communities.China has shown willingness to assist Botswana, and government deserves credit for securing these commitments. However, the success of our...

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