The BDC is the state investment agency primarily charged with economic diversification through investments and partnerships with the private sector. The corporation was allocated about P500 million in the current financial year for recapitalisation by government, its sole shareholder.
Officials told BusinessWeek that the investment pipeline will allocate a significant portion of funds to projects in manufacturing in order to pioneer new industries and bolster export-oriented businesses.
BDC's managing director, Cross Kgosidiile, stressed that the recapitalisation will not only support new industries but also enhance ongoing projects, such as the refurbishment of Lobatse Clay Works and the upgrade of selected MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities.
"Through the execution of these transactions, BDC will pioneer new industries and unlock value in untapped sectors across the country as well as promote export-oriented businesses,” he said in written responses to BusinessWeek enquiries. “BDC is aligned with government's priority sectors, one of which is to facilitate the growth of the manufacturing sector in order to industrialise Botswana's economy.”
Other sectors of interest for the BDC include financial services, agro-processing, and property.
Currently, BDC's investment portfolio includes property, manufacturing, and services, with offshore investments also part of its assets. The Corporation’s total assets are valued at P5.3 billion, reflecting an 18% growth from the previous year.
The corporation aims to invest globally in high-return commercial and strategic projects, while also integrating Botswana into the world economy through key partnerships with global economic players.
"The corporation's strategy focuses on citizen economic empowerment and inclusion, investing in large scale, export-oriented business and integrating Botswana into the global economy through strategic commercial partnerships," Kgosidiile said.
Further, the MD said the corporation’s fundraising efforts are a strategic priority throughout the year and into the next, as the BDC focuses on converting the project pipeline into tangible investments.
"As a result, securing adequate funding will be essential to support our ongoing and future initiatives, "he said.
BDC has listed a bond programme for P1 billion on the Botswana Stock Exchange, with P600 million still available for subscription. The instrument is part of the BDC’s active exploration of further funding avenues to support its expansive investment agenda.
Meanwhile, the corporation plans to diversify its investments, with some existing projects earmarked for divestment based on asset and liability matching and return considerations.
"Divestment is an inherent part of BDC’s normal course of business as the corporation invests with a view to divesting once the investments are mature thereby empowering the private sector," the MD told BusinessWeek.
