Says impact of COVID-19 on investee companies is to blame
The investment arm of the government, the Botswana Development Corporation (BDC) Group, closed the year with its operating profit at P37 million, 89 percent lower than prior year’s P341 million.
According to the Group’s unaudited abridged financial results for the year ended 30 June 2021 released recently, this was driven mainly by negative impacts of the COVID-19 pandemic on the operating environment of BDC’s investee companies that affected income lines, including dividend and rental income.
“Aside from impact on rentals and dividend income, valuation of investment properties in the year were noted to have a marginal decline compared to prior periods where fair gains of P125 million were recorded,” BDC notes in the report.
“Both the group and companies were also negatively affected by adverse movements in foreign exchange rates. Notable was an unrealised loss of P24 million from the impact of the dollar exchange rate movements. Similar to factors noted in relation to company balance sheet, BDC Group’s total assets remains strong at just under P5 billion as at 30 June 2021.”
Nevertheless, BDC notes in the results that its aim is to change Botswana’s economic
landscape. “BDC wants to be an investment partner of choice in the transformation of the country’s economy that best captures what drives us forward and where we want to be,” it says.
“BDC has solidified direction dubbed ‘Beyond 2019’ bedrocked upon maximizing longterm value for shareholders and creating sustainable wealth for future generations by deeply
integrating Botswana into the global economy through investments and partnerships.
“BDC’s strategic intent is to explore ventures that will further build and enhance Botswana industries, transform the economy and return high yields that contribute towards the Vision 2036 ambition to realise a high income country standing.”