- Revenue rises from P206 million in 2021 to P1 billion in 2025 amid persistent losses, rising costs, and structural pressures
GAZETTE REPORTER
The review period between 2021 and 2025 marks what officials describe as a pivotal phase in the performance of the Botswana Meat Commission, characterized by both sharp revenue growth and continued financial strain.
Acting Chief Executive Officer Mmabasotho Tibe told the Parliamentary Standing Committee on Statutory Bodies and State Enterprises that “in 2021, our total revenues for the whole year were sitting at P206 million.” She added that by 2025, “we managed to achieve 1 billion worth of revenues.”
The commission attributed part of the volatility to external shocks, including the COVID-19 period and subsequent market disruptions. The review also covers what Tibe described as “significant external pressures and structural challenges,” alongside evolving compliance demands in export markets.
Losses Persist
Despite revenue growth, the commission reported sustained losses over most of the period. “In 2021, BMC reported losses of more than P115 million,” Tibe said.
She noted that “for the four years up until 2024, BMC was still reporting losses,” with a net loss of P198 million recorded in 2024. The commission said 2025 is expected to show a marginal profit, although Tibe linked this outcome to financing pressures, stating it is “because of our high cost of borrowing.”
However, she highlighted a shift in operational performance, noting that “if you were to look at our operating profit, we reported operating profit of more than P50 million.”
Tibe explained that the organisation’s cost structure remains heavily weighted toward fixed costs, meaning “we continue to incur costs irrespective of the reduced activity levels.”
Market Pressure
The commission also pointed to disruptions in livestock production and export markets. Before recent disease outbreaks, its primary export market was the European Union, which imposed strict compliance requirements.
Tibe said the review period includes repeated animal health disruptions, noting that “we also had outbreaks in 2022 in some parts of the county, that also continuously affects disrupts the operations of BMC.” She added that current foot and mouth disease outbreaks have further compounded operational challenges.
Balance Sheet
Financial position indicators also fluctuated sharply during the period. “In 2021, the balance sheet was negative as reflected by total equity of P170 million,” Tibe said. She added that this position has since improved, with “total equity, as in 2025, is sitting at P200 million.”
The commission confirmed it is not receiving broad government subventions, apart from targeted support. “BMC is only getting subventions, as per the President’s Directive of 2018 to support MAUN BMC,” Tibe said, noting an annual allocation of around P23 million.
She explained that the arrangement was intended to protect operations in Maun from financial strain elsewhere in the system, though she acknowledged it has created structural challenges in balancing performance across facilities.
Debt Position
Tibe also addressed the commission’s debt profile, stating that it has three government loans which were restructured. She said BMC was granted a two-year grace period and “as at the end of 2023 they were not in default because we were still going through the grace period,” with total exposure sitting at P368 million.