Search the Web

BHC fights to reduce expenditure (Daily News)

GABORONE - Botswana Housing Corporation (BHC) chairperson, Mr Maclean Letshwiti says the institution continues to make significant efforts to meet its aims despite challenges such as the rapid pace of urbanisation.

Mr Letshwiti writes in the BHCs 2005 Annual Report that other challeges they encounter in their efforts to provide the nation with housing include serious economic challenges and the impact of HIV/AIDS pandemic on productivity.

Others include increased spending on the fight against HIV/AIDS and the need to control and reduce overall expenditure.

He says during the past year the corporation did not increase its rentals pursuant to the objective of ensuring that its products and services are market-related in line with a previous directive from the government, which clearly instructs BHC to gradually move its rentals towards market levels.

The prevailing below-market rentals, he says negate the shareholders efforts and policy in promoting home-ownership as it results in many people preferring to rent than to buy due to monthly rentals being lower than mortgage monthly payments.

Mr Letshwiti states that during the year under review, BHC in partnership with government concluded a major task of infrastructure development of Block 7 in Gaborone at a cost of P118.9 million shared on a 40 per cent basis between BHC and Government.

The project according to Mr Letshwiti has released a total of 2 404 plots (residential, commercial and civic and community).

He says during the year, the Corporations total income increased to P245 million, while the operating costs increased from the P123 million recorded in 2003/04 to P158 million.

The effect of this is a 22 per cent decrease in operating surplus, from P111.7million recorded in 2003/04 financial year to P86.7 million he says.

With regard to return on capital employed, which measures the efficiency with which the Corporation is using its available capital to generate income.

He says the return has reduced slightly from 9 per cent in 2003/04 to 7 per cent. The 2004/05 financial year marks the conclusion of the Corporations five year business plan.

Our efforts in going forward are take advantage of opportunities and focus on improving our customer service. BOPA

Source: BOPA Daily News

Botswana set for another budget surplus driven by diamonds, devaluation (Sunday Standard)

Botswana is set for an artificial budget surplus triggered by diamond production and the crawling peg between the pula and the US dollar, a research has shown.

According to Standard Bank of South Africa—trading as Stanbic in Botswana – the main drivers of the boom in this year will be the commodity prices which are at a record high and Botswana’s pulas accelerated loss of strength against the dollar- a currency in which diamond produced from Botswana is sold through. Full story..