BDC records huge leap in profits
Government investment arm, the Botswana Development Corporation’s (BDC) transformation programme has yielded positive results for the Corporation, helping it to increase its profits before tax for the financial year ended 30 June 2015 to P109.8 million from the P67 million loss it recorded the previous year.
The company released its audited financial results last week, noting in its statement that at Group level, profit before tax grew to P247.3 million from P35.7 million in the previous year. It said during the same period, expenses reduced by 28% at Company level and 41% at Group level, showing a commitment to running a leaner and more efficient organization.
“The Corporation’s results come on the back of its wide-reaching transformation programme which included not only a view on the corporation’s processes, structures and policies, but also a re-structuring of its balance sheet through a divestment strategy and a turn-around programme. The Corporation has also embarked on an extensive recruitment drive to build capacity around the areas of venture capital, development finance, risk management, governance and business origination and financial analysis,” the company said.
“Our revenues at both Company and Group levels are up, profit before tax is up, and expenses across both the Company and the Group continue to come down. At the same time, we have grown the group asset base to P4 billion. All these are signs of the early success of our transformation programme,” BDC Managing Director Bashi Gaetsaloe said in the statement.
He noted that the financial year of 2015 marks the first year of their transformation programme and the first full year of their strategic plan, highlighting that under their 5-year plan, they expect to double their business and make a meaningful impact towards the industrialization of Botswana, “Pioneering new industries, promoting exports, creating jobs are all key priorities for our business and for our shareholders. That’s why we exist, to create an impact in the Botswana economy,” he said.
Gaetsaloe further added that their mandate to invest outside the country opens new and exciting possibilities, saying that they are seeking innovative and commercially viable ventures both in Botswana and abroad, “Ultimately, the success of our economy will depend on the ability to not only drive meaningful exports, but also to invest outside of Botswana, and into bigger markets. We believe BDC can and drives this ambitious programme,” he concluded.