Bame Piet
5 October 2007
Gaborone — The Botswana Housing Corporation (BHC) is fighting hard to have rentals hiked either by end of this year or at the beginning of 2008.
BHC corporate communications manager Mookodi Seisa confirmed in Gaborone yesterday that they are holding discussions with stakeholders on reviewing the rentals that were last reviewed three years ago. He would not reveal by what percentage the hike is likely to be or when it would be effected, but stated that "BHC houses are way below the market prices". He said this discourages people from buying houses and is the main reason why some tenants have engaged in sub-letting their homes to make a profit.
"Even two-and-a-half roomed houses in Gaborone are more expensive than a BHC three-bed roomed low-cost house that has most facilities such as water and electricity," he said.
Last Wednesday, BHC addressed councillors of Kweneng District Council where deputy chief executive officer Milidzani Majingo lamented low prices of BHC houses whilst construction costs have escalated over the years. Majingo said that the corporation has not hiked rentals in over three years and that the rates are far below market prices. He also explained why BHC is engaged in other property development projects, such as malls, saying the BHC Act allows them to do so. The meeting came barely two months after BHC held one with Members of Parliament (MPs) at which rentals were among issues discussed.
But the civic leaders argued that the corporation had shifted from its initial mandate of providing housing to low and middle-income earners by selling its units at exorbitant prices. Nominated councillor Motoroko Botokanyana wanted to know what residents of Ga-Phatshwa were going to benefit from 300 houses, of which 166 are at roof level, being built in the area between now and 2009. In response, Majingo explained that BHC is going to build a four-and-a-half kilometre sewerage line for the houses, which residents can benefit from by connecting to it.
He said that their small businesses would also grow since the population will have increased. Tumedi urged the corporation to engage Batswana-owned sub-contraction companies for maintenance works and other works so they can also get into housing business in future as well as playing their part in citizen economic empowerment. He observed that BHC houses in many locations and suburbs in towns and cities are rented to foreigners who use them as nursery schools. He suggested that this business should be reserved for Batswana and BHC should help the country achieve this objective.
Councillors argued that the sale of houses is not good, especially that most of the buyers are civil servants who might eventually be transferred elsewhere. "This means that those who will come after them will not have accommodation and BHC will be required to build more houses," a councillor said. But Majingo assured them that BHC is on "its way to implementing a system that will favour citizen-owned companies in its projects". BHC is building 951 houses in Gaborone, Francistown, Palapye, Selebi-Phikwe, Maun, Kasane, and Ga-Phatshwa.
The corporation also plans to acquire land to build more units in Molepolole, Kanye, and Ghanzi where the demand for houses is increasing.
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