The plans are contained in the corporation’s financial results for the year ended June 30, 2024, which were published to the Botswana Stock Exchange this week.
Beyond the financial services, BDC’s investment pipeline includes significant allocations to other sectors crucial to Botswana’s development such as the manufacturing sector which is due to receive 18% of the funds, while agro-processing is set to benefit 17% of the pipeline.
The ICT sector will be bolstered with five percent of the funds while healthcare and infrastructure development will receive three percent and two percent respectively.
These projects are expected to create 3,650 long-term jobs from the project being considered for funding by the BDC, with 3,550 long-term jobs anticipated from manufacturing and infrastructure projects which include hotel and office development, industrial accommodation for manufacturing firms and mixed-use development.
BDC Managing Director, Cross Kgosidiile, said the pipeline of mega projects holds significant promise for Botswana’s economic transformation.
“BDC with its strategic partners will focus on upscaling soda ash and salt beneficiation to take advantage of the African Continental Free Trade Area (AfCFTA) Agreement. This is expected to contribute significantly to growth in the BDC’s investment portfolio, economic diversification and inclusion,” he said.
Meanwhile, the BDC as government’s investment and economic diversification agency, embarked on a number of projects in the year to June 2024, including investments in Oxygas which is into medical gas production in Selebi Phikwe as well as the turnaround and resuscitation strategy of Lobatse Clay Works that manufactures clay face brick.
BDC also pumped funds into Milk Afric, a dairy farming operation in Lobatse as well as into the development of Tame Mall in Maun.
During the reporting period, the value of BDC’s investment assets rose to P3.54 billion, from P3.49 billion in the prior year, as the corporation spent on its portfolio.
“It is worth noting that on a positive note, total disbursements deployed into new projects amounted to P253 million. “The disbursements were largely attributable to the development of Tame Malls which is expected to further boost Maun’s appeal as a leading tourist destination,” Kgosidiile said.
The managing director further said despite the loan book showing resilience against economic headwinds, the need to restructure the exposure of a major debt facility at year-end resulted in the need to take on additional expected credit losses.
“This exposure drove an increase in expected credit losses at the end of the year thus dampening the overall performance of the corporation,” he said.
The impairments and expected credit losses during the year rose to P177.6 million, from P34.1 million the prior year.
Total borrowings remained stagnant at P2.8 billion. The corporation successfully raised a P75 million debenture facility with one of the local fund managers and also successfully closed and commenced drawdown on a new Euro-based facility that is set to see the business play a more active role in the clean energy/green projects sphere.
“BDC continues to timely service its debts and looks forward to further collaboration with the debt markets for further expansion.”
