BDC assets reach P5.1bn despite COVID-19
Botswana Development Corporation’s (BDC) total assets achieved six percent growth to P5.1 billion in the year to June 2020, despite operating in the background of a turbulent COVID-19 trading environment. According to the Corporation’s recently released financial results, the growth from assets of P4.9 billion recorded in the previous year was mainly due to a rise in the value of investments.
BDC managing director, Cross Kgosidiile said the operating environment had allowed the Corporation to identify opportunities to undertake as part of the new “Beyond 2019” strategic plan.
“As a result, 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.
“We continue to look forward to executing the Corporation’s transformative strategy,” he said.
Kgosidiile added “Beyond 2019” is premised on maximising and creating long term value for the shareholder and creating wealth for future generations by deeply integrating Botswana into the global economy through investments and partnership.
Last year the Corporation signed a P900 million, 10year Line of Credit with the African Development Bank (AfDB). The injection is expected to support the BDC’s long term strategy to scale up its investments in key sectors including manufacturing, transport and services with the objective of supporting the transformation and industrialisation of the economy.
The BDC’s upcoming local investments include agriculture, agro-processing and transport.
Meanwhile, group revenue closed the year at P536 million, 25% higher than prior year mainly driven by significant growth in interest income, coupled with an increase in the commercial value of properties.
Interest on loans was the main contributor to the overall positive performance, aligned to the overall strategic intent to have debt assets as the main source of income at company level.
Group operating profit closed the year at P341 million against prior year’s P175 million, with the 94% growth attributable to efficiencies attained in cost of services from one of the group’s subsidiaries.