Housing Finance in Botswana


This profile is also available in French here.

To download a pdf version of the full 2019 Botswana country profile, click here.

Botswana is located at the centre of southern Africa, positioned between South Africa, Namibia, Zambia, and Zimbabwe. Since independence, the country has rapidly enjoyed strong growth and a stable political environment. Its abundant mineral resources play a dominant role in the economy and accounts for a significant proportion of export earnings. Botswana also forms part of the Southern African Customs Union (SACU), which amongst other objectives, facilitates cross-border trade between Botswana, Lesotho, Namibia, South Africa and eSwatini.

Commercial banks in Botswana have played an essential role in mortgage lending. Botswana also has a relatively low interest rate in the region, but this has not translated into credit growth. Mortgage uptake has been slow due to low income levels and high property prices. Customers are also required to have fixed incomes and a bank account to access a formal mortgage. Botswana has 170 registered Savings and Credit Cooperative Societies (SACCOS) which are central for mobilising savings and funds for on lending. Such loans are largely used for consumption and education, and less on property investments.
The Youth Housing and Instalment Purchase Scheme is an initiative by the government of Botswana targeting the youth for homeownership. Purchase Schemes have opened room for developers to cater to the more affordable housing market. Other government financing initiatives have also been developed to cater for the low-income market segment.

Urban population growth continues to put pressure on the demand for land and housing in urban centres. Botswana has a housing backlog of about 36 000 unit. Private property developers could play an important role in housing delivery. However, private developers target the upper middle and high income households.

Infrastructure development has been a major challenge in the provision of housing in Botswana. The National Development Plan seeks to promote the establishment of public-private partnerships as a mechanism to develop and operate public infrastructure. This will be fundamental for the housing delivery process.

Find out more information on the housing finance sector of Botswana, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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