Botswana Development Corporation (BDC) reports that it disbursed P254 million during the 2024 financial year, with a significant portion allocated to a retail development project in the northern region of the country, an area where the Corporation previously had no presence.
However, according to BDC’s 2024 annual report, the disbursements fell markedly short of the budgeted P869 million, representing a 71 percent shortfall. The Corporation attributes the underperformance primarily to delays in due diligence processes for key transactions.
The FY24 disbursements were also 16 percent lower than those recorded in the previous year. Despite the underperformance, the Corporation maintains a positive outlook for FY25, citing a robust pipeline of major transactions expected to reach financial close in the coming year. BDC said these developments are likely to support a stronger disbursement trajectory and align with its long-term investment strategy.
During the year, BDC made advancements in key investments such as the Mall of Maun, which the Corporation said made a significant mark in the retail sector and brought regional and international retailers to Botswana.
“Lobatse Clay Works and Milk Valley Farms further exemplified our commitment to pioneering industries, industrial revitalisation, and import substitution,” the Corporation said.
“Through targeted capital injections, these projects will continue to promote and support citizen economic inclusion and empowerment, and job creation.”
BDC stated that its gross portfolio value, excluding Industry Support Fund, rose to P5.1 billion in June 2024, marking a 4 percent increase from P4.95 billion in June 2023.
“This growth was primarily driven by disbursements for the retail development,” BDC said.
“Meanwhile, the quality of loan assets improved, with nonperforming loans (NPLs) experiencing a decline of 13.1 percent in FY23 to 11.90 percent in FY24, remaining within the policy provisions of the Corporation.”
BDC said it closed the year with a hot and active deal pipeline valued at P2.47 billion, with two transactions amounting to P300 million at a legal close, six transactions amounting to P873 million were at the due diligence stage, while the balance of the deals were at various initial approval stages.
The Corporation further said it remains confident in a future characterised by significant growth and financial stability as it actively explores investments in priority sectors aligned with the country’s core economic policies.
