14 Feb 2021

Parliament on Friday rejected a motion from Bobonong MP Mr Taolo Lucas requesting Parliament to defer rental increases by the Botswana Housing Corporation (BHC) for a year as a response to the economic distress imposed by the COVID-19 pandemic on tenants and citizens in general.

Tabling his motion, MP Lucas said people’s financial situation had been impacted by the COVID-19 situation and the increase in rentals would further deepen their situation.

He further said the BHC was no longer on its mandate of delivering affordable housing to Batswana, adding the corporation was now selling houses at market rates.

MP Lucas further said tenants were faced with challenges emanating from Value Added Tax (VAT) increase, fuel levy and other taxes, adding more charges were expected since six ministries were reviewing their user fee charges.

He said accommodation was important especially during the pandemic as people were required to self-isolate and self-quarantine in their homes, adding without accommodation people would find it impossible to stay indoors.

For his part, the Minister of Infrastructure and Housing Development Mr Mmusi Kgafela said there was no need for the motion since BHC rental increases would be staggered over a period of five years.

Initially, rentals for individuals were to be staggered over five years while for corporates, government and parastatals, they were to be increased at once.

This saw rentals moving from P900 to P2900 which was considered steep for tenants and Minister Mmusi said the rentals would be staggered for everyone as they had realised although houses were held under the corporates, rentals were paid by individual Batswana.

He said BHC rentals accounted for only 4.3 per cent of the total market and therefore the increase would not have any consequences over the entire market.

Minister Mmusi said the rentals were last increased in 2003 and the corporate was experiencing difficult financial environment.

He said in lieu of payments, BHC offered consultancy and architectural services to government to survive, but their mainstream source of revenue were rentals.

At the end of five years the rentals would still be 20 per cent below the market rates, he said.

Supporting the motion, Francistown South MP Mr Wynter Mmolotsi said the BHC rentals would affect the whole country as other landlords were bound to increase their rates.

He said BHC was not formed to be a profit making organisation but to provide Batswana with affordable accommodation.

MP Mmolotsi said COVID-19 has eroded income streams of tenants and therefore they would not be able to keep up with the increases.

He said a number of people had been staying in pool houses for a number of decades but the government was refusing to allow them to purchase those houses.

Selebi Phikwe West MP Dithapelo Keorapetse concurred that the BHC had deviated from its mandate and had encroached into the space of the private real estate companies as it was selling houses at market rates.

He said people had lost their jobs and were now forced to contend with high rental increases.

MP Keorapetse dismissed reports that the BHC was making losses saying in 2016 its profits were about P16 million.

Thamaga MP Pelaelo Motaosane was also against the BHC rentals, adding they were too exorbitant and therefore were not affordable for ordinary Batswana.

Molepolole South MP Kabo Morwaeng however did not support the motion saying he understood Minister Kgafela’s statement that Batswana would not be impacted as the increases would be staggered.

He said it had been 17 years since the rents were increased and given the current economic situation, the government did not have funds to rescue the corporation. Ends