Mmegi Online :: BDC doubles profits to P224m
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Last Updated
Monday 17 December 2018, 16:18 pm.
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BDC doubles profits to P224m

The Botswana Development Corporation (BDC) said it doubled its profit before tax (PBT) for the year ended June 2016 after embarking on a transformation journey two years ago.
By Isaac Pinielo Wed 07 Dec 2016, 18:00 pm (GMT +2)
Mmegi Online :: BDC doubles profits to P224m








The corporation, which is the government’s investment arm, posted overall PBT of P224 million in the year to June, which is a 104% increase from P110 million a year earlier.

BDC’s drive to increase its profile saw it instituting a major review of the business under the re-modelling programme in order to address major challenges facing the business.

Speaking at a stakeholder briefing yesterday, BDC’s managing director, Bashi Gaetsaloe said with its strategy, BDC aims to double its business in five years.

“The first half of our current five-year strategy was led by our business transformation initiative and consolidating the kind of outcomes that have realised increased growth from our portfolio,” he said.

BDC company total revenue increased by 24% to P384 million from P310 million in 2015. The company revenues from operations closed the year at P262 million, a 35% increase from the year ended June 2015.

Company asset growth experienced a nine percent rise to P212 million net growth against a P26 million reduction in total liabilities. An additional P239 million growth was realised in shareholder funds, representing a 14% year-on-year growth.

BDC group assets grew six percent to P4.4 billion driven mainly by a growth in BDC company net asset base, while group level shareholders’ funds experienced a conservative three percent growth to P3.2 billion. According to Gaetsaloe, the corporation’s focus is now on investing into new ventures to expand

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and solidify the portfolio, while in turn accelerating contribution to the country’s economic development and diversification.

“We have an extensive pipeline of earmarked investments existing which we are confident will contribute significantly to Botswana’s development agenda, whilst at the same time providing satisfactory financial returns to our main shareholder,” he said. Not only has BDC realised profits in the year just ended, but the company boasts of having created 830 new jobs while sustaining 4,793 net jobs across its portfolio of companies.

BDC also approved funding of P588 million to new projects, which the MD said contributed to diversification of the economy, generated exports and expanded the private sector. The company says it has declared and paid a dividend to its shareholder with the last dividend payout having been in 2008.

BDC’s primary mandate is to work towards assisting in the establishment and development of commercially viable businesses in the country.

It does this through a number of different platforms and channels, amongst them the provision of financial assistance to investors with commercially viable projects, supporting of projects that generate sustainable employment for Batswana adding to the skills of the local workforce, and encourage participation in business ventures.

The corporation’s priority sectors are energy, infrastructure, innovation and technology as well as agriculture and agro-procession. BDC also has a mandate for cross border financing of viable projects regionally and internationally.

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