BDC sees traction in turnaround plan
Mbongeni Mguni | Wednesday October 14, 2026 06:00
The corporation recently unveiled full-year results for the year ended June 2026, indicating an increase in revenue at company level of 11% to P485 million as well as a four percent drop in operating expenses. Combined credit and valuation charges fell by 55%, a trend directors said reflected improved financial discipline, strengthened portfolio management and decisive interventions to address legacy investment challenges.
“The significance of our FY2026 performance extends well beyond the return to profitability,” Oteng Keabetswe, BDC MD, said in a statement. “We have restored financial discipline, strengthened our investment capacity and demonstrated our ability to execute a deliberate turnaround strategy. “What matters most is that BDC is now better positioned to deploy capital into productive enterprises and contribute meaningfully to Botswana's economic transformation.'
Directors noted that the strongest indicator of the BDC's renewed momentum is the P855 million disbursed during the financial year, representing nearly 20 times the previous year's level and also a historic high.
“This represents a decisive shift from financial stabilisation towards active capital deployment, reinforcing the corporation's mandate to finance commercially viable enterprises that advance economic diversification,” the directors said.
Complementing this achievement, BDC unlocked P614 million through its asset recycling programme, releasing capital from underperforming and non-core investments for redeployment into more productive opportunities.
The corporation also strengthened its financial position, with group assets increasing to P6.3 billion, group closing cash balances rising from P77 million to P345 million, and company operating cash flow improving from a P169 million outflow to a positive P59 million.
'Our turnaround is not simply about improving financial results; it is about putting capital to work. “The P855 million deployed and P614 million unlocked demonstrate that we are moving decisively from recovery to execution, ensuring that our resources are directed towards investments capable of delivering sustainable commercial returns and meaningful economic impact,' Keabetswe said.
Whilst the BDC’s numbers at company level reflect improved resilience and the platform for enhanced investments, its group performance, based on subsidiaries it has invested in, continued to underperform during the financial year.
According to its financials, total income at group level dropped to P552.3 million in the year to June 2026, from P787.4 million in the prior year. Group pretax losses reached P22.3 million from pretax profits of P26 million.
“At group level, total income decreased to P552 million mainly reflecting reduced conferencing activity and limited income from subsidiaries that are still in their implementation phase,” directors said. “This was partly offset by higher trade income in the automotive business, supported by margin expansion and volume growth. “The group is expected to deliver improved revenue performance as these business activities gain momentum.”
Directors said that going forward, emphasis would be on the execution of clear value creation strategies for each portfolio company, focused on lifting operating performance, scaling businesses in their ramp-up phase and strengthening governance and management capability. This is expected to return the group to profitability, directors said.
They explained that the BDC's turnaround is reflected in its investments across sectors critical to Botswana's economic diversification. Investments such as Delta Automotive Technologies and Lobatse Clay Works are supporting the development of domestic manufacturing capacity, industrial skills and employment opportunities. Meanwhile, Milk Valley Farm represents a strategic investment in commercial dairy production, aimed at strengthening food security, reducing import dependence and developing an integrated domestic dairy value chain.
“These investments demonstrate BDC's evolving role as more than a financier, positioning the corporation as a strategic investor capable of building industries, strengthening productive capacity and catalysing private-sector participation.”
The corporation's new five-year corporate strategy, aligned with Botswana's Economic Transformation Programme, seeks to build on this momentum. By 2031, BDC targets P5.5 billion in investments and the creation and sustenance of 25,000 decent jobs, with an active investment pipeline of P1.63 billion entering the 2027 financial year.