Botswana needs $1 billion for affordable housing
Botswana must invest $1 billion over the next ten years to meet the demand for affordable houses. A fast-growing population and rapid urbanisation are the main drivers for affordable homes.
Botswana is a landlocked country in Southern Africa with a population of 2.3 million. It has a GDP per capita of almost $8,000, relatively high for sub-Sahara Africa. Unfortunately, low wage inflation and increasing unemployment, currently estimated at over 22 per cent, are negatively affecting the country’s housing market.
Botswana is ranked number one on ABiQ’s composite risk index, making it the safest place to invest in Africa. It has a stable economy driven by mining and agriculture. The population will grow by 17 per cent to 2.8 million by 2031, creating substantial demand.
Almost 3 of every 4 Botswanans live in urban areas, and the forecast is it will increase to 4 in 5 by 2050. ABiQ estimate approximately 50,000 houses will have to be built over the next ten years to accommodate the growing population on the one side and urbanisation on the other.
Currently, the cheapest low-cost house in Botswana sells for more than $35,000. This price is above what the market can afford. For affordable housing to make progress, house prices should be in the $20,000 to $25,000 range. To build the 50,000 houses over the next decade at a price point of $20,000, Botswana must invest more than $1 billion.
For more information on housing projects and opportunities in Botswana, please contact us here.