Group aims to integrate Botswana into the global economy through investments and partnerships
GAZETTE REPORTER
The investment arm of the government, Botswana Development Corporation (BDC), has seen its revenue rise by 25 percent when it recorded P536 million for the 2020 financial year, compared to P427 million in the previous year.
According to BDC audited abridged financial results for the year ended 30 June 2020, which were published on the Botswana Stock Exchange recently, the increase in the Group’s revenue was mainly driven by significant growth in interest income by the BDC coupled with an increase in the commercial value of properties.
“Interest on loans was the main contributor to the overall positive performance aligned to overall strategic intent to have debt assets as the main source of income at company level,” BDC said in the financial results.
Positioned as one of the country’s leading investment companies in the financial services sector, the BDC Group also saw growth in operating profit as it closed the year at P341 million against the prior year’s P 175 million. BDC attributed the growth in operating profit to efficiencies attained in cost of services from one of the group’s subsidiaries.
“Despite the impact of COVID-19, the group remained resolute and maintained lower administrative expenditure amounting to P130 million, 33 percent lower than prior year due to overall cost containment as well as planned restructuring of some investment assets that resulted in loss of control,” BDC announced. “The group total assets showed 6 percent year-on- year growth at P5.1 billion mainly due to growth in value of investment assets.”
Meanwhile, the parastatal also noted that BDC is at a stage where it is ready to implement a new strategic direction dubbed “Beyond 2019,” which is premised on maximising and creating long-term value for the shareholder and creating wealth for future generations by deeply integrating Botswana into the global economy through investments and partnerships.
“The current operating environment which has been affected by COVID-19 has allowed the corporation to identity opportunities to undertake as part of the new ‘Beyond 2019’ strategic plan,” it said. “As a result, BDC will invest in projects that will accelerate the country’s economic recovery process whilst ensuring that the economy is better prepared to withstand similar shocks in future.
“Despite operating against a background of a turbulent COVID-19 environment, which has negatively affected the global economic outlook, the corporation has remained resilient and continues to look forward to executing its transformative strategy.”
BDC was established with a mandate to provide, facilitate and support financing of commercially viable enterprises that contribute towards building a sustainable and diversified economy in Botswana.