08 Dec 2016

Half way into its five-year strategy, Botswana Development Corporation (BDC) continues to realise sustainable growth.

The BDC managing director, Mr Bashi Gaetsaloe, said this at the stakeholders briefing session in Gaborone recently.

 “The end of the 2016 financial year marks the midpoint of our current five-year strategy, which began in 2014. The first half, that just concluded was led by our business transformation initiative and consolidating the kind of outcomes that have realised increased growth from our portfolio,” he said.

BDC reportedly had overall profits before tax for the year ending June 2016 standing at P224 million, an increase of 104 per cent from P110 million recorded in 2015, with an increase in total revenues by 24 per cent to P384 million from P310 million in 2015.

“Looking ahead, our focus is now on investing into new ventures to expand and solidify our portfolio, while in turn accelerating our contribution to Botswana’s economic development and diversification,” he said.

He said they have an extensive pipeline of earmarked investments existing which they were confident that, it will contribute significantly to Botswana’s development agenda, whilst at the same time providing satisfactory financial returns to the main shareholder.

“BDC is mandated to deliver both a financial as well as a development return to the shareholder. We are pleased to report that in this current financial year we have managed to achieve both of these priorities for our shareholder,” he said.

He said, not only have they realised profits, they also created 830 new jobs while sustaining 4 793 net jobs across their portfolio of companies.

“In the year just ended BDC approved funding of P588M to new projects which contributed to diversification of the economy, generated exports and expanded the private sector,” he said.

Mr Gaetsaloe said they were pleased to declare and pay a dividend to their shareholder, of which the last dividend pay-out has been in 2008.

“We are thankful to the support we have received from the shareholder as represented by the Ministry of Investment Trade and Industry and Finance and Economic Planning. We are also grateful to our Board of Directors, not only for their guidance, but also for giving us the independence to plan and execute our operations as a private commercial company,” he said.

While sharing on the key financial highlights, the chief financial officer, Mr Mbako Mbo said the company revenues from operations closed the year at P262 million, a 35 per cent increase from the year ended June 2015.

“Company asset growth experienced a 9 per cent 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 per cent year-on-year growth,” he said.

Mr Mbo said the BDC Group assets grew six per cent to P4.4 billion driven, mainly by a growth in BDC net asset base, whilst group level shareholders’ funds experienced a conservative 3 per cent growth to P3.2 billion. ENDS