ABSTRACT This paper describes the limitations of the housing policy in Botswana when dealing with poverty alleviation. Botswana is faced with high levels of poverty that does not conform to the country’s economic success since independence. Very few opportunities exist for the urban poor to earn a living and work themselves out of poverty. Efforts to address poverty in the past yielded mixed results and failed the urban poor more especially that the interventions were biased towards rural areas. Evidence has been provided that housing has a critical role to play in poverty alleviation. The Government of Botswana has put in place housing projects (one of which is used for this enquiry) through which poverty can be addressed alongside other human needs such as shelter. An enabling environment has to be created for the successful exploitation of housing for poverty alleviation. It is therefore imperative that the government ensures the existence of such an environment.