BDC records marginal uptick in portfolio value

Botswana Development Corporation (BDC), the government investment arm, said its portfolio value increased by six percent to P5.4 billion in June 2025, thanks to a marked growth in disbursements into retail development and manufacturing projects. The Corporation’s 2025 annual report excludes the Industry Support Fund (ISF) and said the rise from P5.1 billion in the previous year under review was also attributed to appreciation in the value of investee companies. BDC noted that the quality of loan assets declined slightly, with non-performing loans (NPLs) rising from 11.90 percent in FY24 to 47 percent in FY25. “This spike was attributed to a single large exposure that went into default in the year,” BDC said in the report. “Efforts to remedy the default have advanced subsequent to year-end. Without this exposure, NPLs would have been noted at 17 percent within appetite.” For the year ended 30th June 2025, BDC said it disbursed P44.3 million. Out of this, BDC said 72 percent was allocated to a significant retail development in the northern region, where it currently has no presence, while the remainder was invested in the existing portfolio. Disbursements reportedly fell short of budgeted levels, mainly due to the Corporation’s decision not to pursue certain opportunities after identifying risks that exceeded its risk appetite during the appraisal process. Consequently, FY25 disbursements were also below the previous year’s level. Despite this shortfall, the Corporation remains optimistic and says it is determined to improve disbursement performance in Q1 FY26, with a bold strategic intent to transform BDC into a mega enterprise. At year-end, the Corporation maintained an active deal pipeline valued at P 1.21 billion. This comprised P313 million at the disbursement stage, P134 million at legal close, and P275 million at the approval stage, with the balance of the pipeline at various initial approval phases. To support the growth of portfolio companies, the Corporation invested approximately P12.4 million in additional funding for investee companies to meet working capital and expansion requirements. BDC has noted that its revised strategic focus prioritises projects of national and economic importance in areas such as infrastructure, financial services, media and technology, energy and climate, healthcare, services, and agriculture. BDC stated that a key strategic pillar is to foster collaborations and partnerships that leverage the competencies, technical expertise, and industry experience of potential partners. “The Corporation remains confident in a future characterised by exponential growth and financial stability,” the report said. “It is actively pursuing investments in priority sectors aligned with the country’s core economic policies.” In addition, BDC continues to collaborate closely with key partners, executing several Memoranda of Agreement to enhance value chain development, mineral beneficiation, and high-value manufacturing. The Corporation is also identifying commercially viable projects that advance its strategic objectives while driving sustainable economic development. In terms of financial performance, the group and the company realised mixed results. While overall revenue grew by 5 percent in the company’s results to P437m from P415m in the prior year, and the group’s revenue grew by 27 percent to P787 million from P621 million in the prior year, overall results were subdued. The group achieved a profit for the year of P15 million, while the company recorded a loss of P167 million. According to BDC, this subdued performance was driven by the underperformance of two main investments: a large foreign-currency-denominated exposure, for which recovery is underway, and an exposure through an investment in the coal mining sector, which is being actively monitored.

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BDC records marginal uptick in portfolio value

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