Despite headwinds and an unstable business ground, Botswana Development Corporation (BDC) has managed to register a 14 percent increase in company revenue from 2021’s P225 million to P257 million for the year ended June 30 2021.
According to the parastatal’s results, BDC was able to survive the impacts of the COVID-19 pandemic by raising new funding to facilitate disbursements into new projects. The Chief Executive Officer (CEO) of BDC, Cross Kgosidiile, says as part of these disbursements, the BDC made a third strategic investment into an internationally recognised producer of convenient meal solutions for consumers throughout sub-Saharan Africa and global markets.
Kgosidiile notes that the company has been able to recognise profit before tax of P30 million inspite of COVID-19, adding that it is a much subdued position from the prior period but still significant, considering challenges in the business environment.
But BDC has suffered in some income lines, including dividend and rental income, with the group closing the operating period at P37 million, 89 percent lower than the prior year at P341 million mainly driven by significant impacts of the pandemic on the operating environment of investee companies. Aside from loss in rental and dividend income, valuation of investment properties in the year were noted to have a marginal decline compared to prior periods where fair value gains of P125 million were registered.
According to the results, 2019 marked the beginning chapter for the 2021-2026 strategic period, which is also the next horizon impact in turnover. According to BDC the transition presents an opportunity to build a resilient food supply chain and safeguard food security for Botswana. The current year disbursements were aligned to the strategic intent and steps were taken to identify opportunities that align to the Economic Recovery and Transformational Plan of the government.
Through investments and partnerships, BDC’s strategic intent is to explore ventures that will further build and enhance business industries, transform the economy and return high yields that contribute towards the Vision 2036 ambition of realising high income standing for Batswana. Group total assets remain strong at just under P5 billion as at 30 June 2021.
