03 Aug 2026

Botswana Development Corporation (BDC) continues to participate in the hospitality sector to drive economic diversification, promote tourism and foster sustainable economic growth across the country.

This was said by Minister of Trade and Entrepreneurship, Mr Tiroeaone Ntsima, answering a question in Parliament recently.

Minister Ntsima stated that BDC’s hospitality portfolio comprised both wholly-owned assets and strategic equity investments.  “These assets span hotels, tourism and hospitality facilities, all managed on sound commercial principles while advancing broader national development goals,” the minister said.

Mr Ntsima explained that as an active investment institution, BDC continuously monitored the financial and operational performance of its holdings and reviewed their strategic fit within its broader portfolio.  The proactive management, he said, allowed the corporation to strengthen investments showing long-term value, implement turnaround strategies where needed and responsibly divest from mature or non-aligned assets.

He further told Parliament that BDC’s hospitality portfolio currently consisted of four primary strategic investments, which included a 40 per cent stake in Peermont Global Botswana, which operated four hotels and two gaming facilities in Gaborone and Francistown under the management of South Africa’s Global Resorts Management. 

However, he said while Peermont remained profitable, its returns had been constrained by subdued room occupancy and heightened competition in the gaming sector. In the eco-tourism space, he said BDC had a 30 per cent share in Mashatu Nature Reserve, a high-end operation located in the Tuli Block.  “Despite generating strong top-line revenue, Mashatu’s overall profitability remains constrained by high operating costs,” he said.

Furthermore, he said BDC also maintained a 27.6 per cent stake in Cresta Marakanelo Limited, Botswana’s largest hotel group, operating 12 hotels nationwide. 

He added that Cresta experienced improved revenue and occupancy during the 2025 financial year, despite challenging market conditions, though profitability was offset by impairment charges and operational expenses.

On one hand, he said, Thakadu & Kwena Hotels, a 100 per cent citizen-owned entity in Letlhakane funded by BDC through loan and preference share facilities, previously offered hotel, conferencing, restaurant and casino services.  However, he indicated that prolonged operational underperformance ultimately led to the cessation of operations.

The minister also outlined several major hospitality developments currently in BDC’s pipeline, saying in Gaborone’s Fairscape Precinct, BDC was planning a 160-key five-star premium business hotel as part of a mixed-use development. 

The project, he said, was currently in its pre-development phase, with consultant appointments and fundraising efforts at an advanced stage. Parliament also heard that BDC was also pursuing an ultra-luxury boutique hotel designed to meet international standards and target high-end leisure, diplomatic and executive business markets. 

He added that the initial investment appraisal for the project had been completed and it was undergoing due diligence.

Furthermore, he said BDC was spearheading the New Airport City development, located approximately two kilometres from Sir Seretse Khama International Airport.  “This massive project entails constructing an all-encompassing World Trade Centre across 1.26 million square metres, featuring four hotels, trade centres, exhibition halls and entertainment venues. Ground-breaking took place on June 5 this year and BDC is currently seeking approval from the Department of Surveys and Mapping to subdivide the land for phased development,” he said.

Minister Ntsima reaffirmed BDC’s commitment to maintaining a commercially disciplined portfolio that attracted investment, created jobs and advanced national economic goals through active performance management, strategic divestments and viable new projects.

MP for Selebi Phikwe East, Mr Kgoberego Nkawana, had asked for an update on the business viability of BDC and Cresta-operated hotels and whether the corporation planned to launch new hotel developments. ENDS