BDC divest from Asphalt

Lebang
Lebang

The Botswana Development Corporation (BDC) has put up its shares in Asphalt Botswana for sale, as part of its divestment strategy.

Last year, the corporation embarked on an exercise to review its business portfolio, which is aimed at divesting from approximately 12 percent of its current portfolio of projects and shed assets that do not necessarily fit into the new strategy. BDC, which is a government-owned business and development financier, holds 48 percent of shares in Asphalt Botswana, while other shareholders hold 52 percent. Asphalt Botswana was established in 1987 as a joint venture between BDC and private investors.

The company is involved in the construction of roads, infrastructure development, road resurfacing and supply of asphalt. In an interview with Mmegi Business, BDC head of marketing and communications, Boitshwarelo Lebang stated that Asphalt Botswana is a mature investment and that the shareholders intend to sell 100 percent of their shares.

She, however, declined to divulge information about the reserve price of the sale stating that such details are included in the Terms of Reference of the expression of interest.


According to Lebang, the corporation has always divested from mature investments especially in industries where the private sector has evolved and developed.

In the past, BDC has divested from Air Botswana, Avis, Gaborone Sun, Nortex, BotswanaCraft, Property projects through the listing of Letlole La Rona (LLR) Limited.

It has announced that it is selling or is the process of disposing interst in Toro Lodge, Khawa Lodge, Cumberland Hotel, Golden Fruit and Metropolitan to the highest bidder through public auctions.

Lebang noted that investments in non-mature sectors include some manufacturing sub sectors, energy, infrastructure development, agriculture and others.“The corporation continuously reviews its portfolio with the view to divest from its mature investments while seeking new investment opportunities,” she said.

BDC investment portfolio is currently valued at over at P3.6 billion with total or full shareholding in companies ranging from industrial, property, agriculture and manufacturing.

Through this portfolio restructuring process, BDC hopes to create a stronger balance sheet from which it will launch future initiatives that will diversify the economy, create jobs and strengthen exports.

Editor's Comment
What about employees in private sector?

How can this be achieved when there already is little care about the working conditions of those within the private sector employ?For a long time, private sector employees have been neglected by their employers, not because they cannot do better to care for them, but because they take advantage of government's laxity when it comes to protecting and advocating for public sector employees, giving the cue to employers within the private sector...

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