BDC slips to P3m loss
Friday, February 16, 2024 | 850 Views |
Home of capital: The BDC’s headquarters in Gaborone PIC: MORERI SEJAKGOMO
According to the financials released via the Botswana Stock Exchange on Monday, the BDC fell into losses, from pretax profits of approximately P32 million in the year to June 2021.
“The corporation was faced with adverse market forces which resulted in significant adverse variances in finance costs and valuation impairments of equity investments,” directors said. “With global increases in interest rates, as well as full draw down on approved facilities, BDC experienced an increase in finance costs of 30% during the year.”
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...