BDC optimistic with the ‘ Beyond 19 strategy’
2020 financial performance solid despite COVID - 19 BDC identifies opportunities to unlock growth
Botswana Development Corporation’s next strategy will be all about maximizing and creating long term value for its shareholder, the government as well as generate wealth for future generations.
This is the message that is coming clearly from the group’s latest financial and operational report which shows the group’s financial performance indicators are on the green despite the subdued economy which has been made worse by COVVID- 19 pandemic. Despite all these major challenges, the organistion is ready to roll. “BDC is at a stage where it is ready to implement on a new strategic direction dubbed Beyond 19,” said the group which is led by Cross Kgosidiile, a corporate leader who is respected by peers.
Under the new strategy, the institution is expected to further integrate the country into the global economic systems through wellthought investments and partnerships. Even as the COVID - 19 has hit hard institutions across the domestic and global markets, BDC has managed to identify opportunities which will help the country recover more quickly. “BDC will invest in projects that will accelerate the country’s economic recovery process whilst ensuring that the economy is better prepared to withstand similar shocks in future,” said the group.
“Despite operating against a backdrop of a turbulent COVID- 19 environment, which has negatively affected the global economic outlook, the Corporation has remained resilient and continues to look forward towards executing its transformation strategy.” Domestically, BDC has invested in several sectors of the economy such as property, agriculture, manufacturing, services among others. Meanwhile, BDC which has also been given the leeway by the shareholder to invest outside the country has disclosed that group revenue for the full year to June 2020, ballooned to P536 million. This is much higher than P427 million realised during the same period the year before. According to the Corporation, the growth in revenue was fueled by strong increase on interest income and commercial value of properties. Interest in loans also boosted revenue. The group operating profit, closed the financial year at comfortably P341 million, almost double what was generated the year before. “Despite the impact of COVID - 19, the group remained resolute and maintained lower administrative expenditure amounting to P130 million,” said BDC. The expenditure was 33 percent lower compared to results up to June 2019.
During the year under discussion, BDC also closed its second deal within the region. The group has not announced the total value of the transaction only to mention that the deal is within the real estate sector. While companies the world over are struggling, BDC’s war chest is strong. “Liquidity and capital ratios remain robust and supportive of the business drive to deliver on the strategic goals,” explained BDC which has also been given a development role of disbursing of P300 million to deserving companies under the Industry Support Fund. BDC is the country’s main agency for commercial and industrial development.