Housing Finance in Botswana

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Botswana country profile, click here.

Botswana is one of the few African countries that has managed to successfully deliver affordable housing to its urban low-income population by making land and urban housing accessible through appropriate policies and programmes. The Botswana Housing Corporation (BHC) and the Accelerated Land Servicing Programme are some of the initiatives delivering state mass housing. Botswana is highly urbanised with 75% of the population classified as urban. The major cities and towns have attracted a large proportion of the rural population. Botswana is classified as an upper-middle-income country. Its gross domestic product (GDP) per capita levels are high by Sub-Saharan Africa standards, estimated at P7 349 (US$678) in 2021. This is far removed from a per capita income level of P974 (US$90) in 1966 and the discouraging prospects the country faced 50 years ago. The landlocked economy has beaten the odds by creating a thriving economy.

Much of this success is attributable to the stable macroeconomic environment, government’s commitment to fiscal discipline, the prudent management of mineral revenues and wealth, a well-capitalised banking system, and a sensible crawling peg exchange rate system. Furthermore, corruption is less pervasive than in other parts of Africa.

Real GDP contracted by 8.5% in 2020, compared to a growth of 3% in 2019. The contraction was mainly attributable to a decline in output of both the mining and non-mining sectors resulting from the adverse impact of COVID-19 on the economy. Real GDP is projected to grow by 7.5%, 5.4%, and 4.3% in 2021, 2022, and 2023, respectively. The positive outlook is attributed to the non-mining sectors which are expected to pick up further, driven by structural reforms, including economic stimulus supporting the national economy, and a move that provides utilities at reasonable prices to encourage domestic manufacturers. Construction is expected to continue benefiting from the ongoing fiscal stimulus.

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 2021 edition, which has up-to-date profiles for 55 African countries.

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