BDC reaches for African footprint

MBONGENI MGUNI
Staff Writer | Friday May 17, 2013 00:00

The BDC, one of the few profit-making parastatals, participated in the recently ended Tourism Indaba held in Durban where it held several meetings with potential investment targets. Several senior officials, including acting managing director James Kamyuka added weight to the corporation's efforts to kick-off its efforts towards an African footprint with a possible investment in tourism.

'Our mandate is that we should invest in the region and put money into projects that we believe could generate income for Botswana,' BDC spokesperson, Gomolemo Zimona said.'We are going around seeing whether there are any projects worthy of participation. Another institution, (South Africa's) Industrial Development Corporation is investing in Botswana and we are also thinking about investing in South Africa'.

While the parastatal is yet to invest regionally, some indicators point to a tourism venture as being the first recipient of BDC funding in the form of debt financing or the acquisition of equity.Locally, the BDC has a strong tourism presence and experience, with a 26 percent share in hotel group, Cresta Marakanelo and a 40 percent stake in Peermont Global Botswana. Cresta Marakanelo's properties include Mowana Resort and Spa as well as the iconic President Hotel, while Peermont's interests include the Walmont Hotel, the Gaborone International Convention Centre and the Metcourt hotels.

The parastatal also holds a controlling interest in Fairground Holdings, a group operating the popular venues, Boipuso and Ditshupo Halls, as well as the fairgrounds, which annually host various events.'We also helped Phakalane (Estates) at one point and we are the only parastatal with a game reserve, which is the Mashatu Game Reserve,' Zimona said. 'We are also involved in environmental activities and the preservation of fauna. The people attending the Indaba are business owners, not representatives, making it easier to strike deals'.

The BDC's new policy was first announced last November with board chairman and finance ministry permanent secretary Solomon Sekwakwa explaining that the move was designed to bolster state enterprises. From its establishment in 1970, the BDC's investment activities were confined to Botswana by law with its mandate explaining that this was to 'stimulate domestic growth and assist in projects that create employment for Batswana'.

Over the years, the corporation built up a strong investment portfolio currently estimated in excess of P1 billion in projects ranging from tourism, property, manufacturing and agriculture.By comparison, South Africa's IDC was allowed to invest in SADC states from inception and more than 10 years ago, was given approval for the rest of Africa. Presently, the IDC has investments in African states such as Ghana, Nigeria, Ethiopia and Rwanda.