Housing Finance in Botswana



This profile is also available in French here.

To download a pdf version of the full 2023 Botswana country profile, click here.

Botswana’s population will be 2,346.179 in 2022. Some citizens still can’t afford housing despite the government’s efforts through BHC. Lack of policy, affordable housing, and serviced land causes inadequate housing. Costs exceed earnings. Housing statistics hinder planning, targeting, and monitoring.

Following a decline of 8.8% in 2021, Botswana’s GDP grew 13% between March 2021 and March 2022. The World Economic Outlook Update forecasts growth of 6.1% in 2021, 3.2% in 2022, and 2.9% in 2023. From 11.4% in 2021, Botswana’s GDP growth should moderate in 2022 and 2023. The inflation rate in June 2022 reached its highest level since January 2009. In addition, food and energy prices increased in the second quarter of 2022.

The majority of Botswana’s families cannot afford the cheapest home due to the country’s economic situation. At 30% affordability, a household would need a monthly income of P14,000 to purchase this home. Numerous families finance the construction of their homes with personal funds and unsecured loans. Flexible, longer-term, and low-interest housing financing is necessary for the quick construction of high-quality homes. There are low-income housing programmes available.

In March 2022, home loans represented 26.6% of household credit and 18.1% of total credit. In March 2022, residential mortgage loans decreased from $11.2 billion in March 2021 to P13.8 billion. The recommendation is to switch from mortgages to personal loans. 45 to 105 percent LTV for commercial banks Pension funds are fiscally sound. 50% of the GDP is invested in pension funds. Members are not eligible for housing or third-party loans.

The 2013 revision of Botswana’s Building Code establishes parameters for building dimensions, placement, and construction. By increasing adaptability, diversity, and sustainability, the code enables developers to reduce costs.

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 2023 edition, which has up-to-date profiles for 55 African countries.

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