GABORONE, Botswana, December 2019 — Botswana Development Corporation (BDC) has successfully completed its ambitious 5-year transformation strategy, having driven strong profitability and continued growth. The Corporation presented its results for the financial year ended 30th June 2019 to stakeholders at Cresta Lodge recently.
In his opening remarks the Acting Managing Director, Moatlhodi Lekaukau said, “BDC has come full circle and is successfully positioned for further growth. We are confident that as the Corporation pursues its next strategic period, we will continue to be a driving force making viable contributions to the Botswana economy that steer it to become knowledge-based and export-led, in line with Vision 2036.”
Over the 2014-2019 strategic period, BDC achieved a number of key milestones:
- Returned BDC to profitability with over P1 billionin cumulative profits.
- Grew the net worth of the business by P700 million to a record P2.1 billion.
- Total Asset Base growth to a record P4.8 billion.
- Paid P90 million in dividends to the Botswana Government over the period
- Transferred P285 million of listed stock to the Public. P1 billion note programme strategic development of local capital markets.
- Transferred businesses and assets worth P340 million to local companies and Batswana.
- Disbursed P1.2 billion towards new projects and created 1700 new jobs.Over 5,000 jobs sustained across Group of companies.
- Achieved an investment-grade credit rating of Baa2 / Stable by Moody’s Investors Service during (reaffirmed in September 2019), this making BDC the first local company to achieve such a ranking. The issuer ratings entail a standalone credit profile of b1, which balances what Moody’s recognises as a strong company solvency and liquidity position against a high concentration of strategic participation in large equity investments.
- Executed new investments that continued to pioneer industries, develop untapped sectors for growth with a focus on export-led production in line with Vision 2036. These include the following ventures in major sectors in the economy:
- Agri-business (Milk Afric Dairy Plant, Talana Farms- Kwenantle Farmers)
- Automotive Components Manufacturing (Pasdec, Kromberg & Schubert)
- Health & Services (Sidilega Private Hospital, Francistown TeachingHospital Academy, Transport Holdings Group, Masawara Group)
Looking ahead, BDC has solidified a bold new direction bed rocked upon maximising long-term value for the shareholder and creating sustainable wealth for future generations by deeply integrating Botswana into the global economy, through investments and partnerships.
BDC’s strategic ambition overall is to explore ventures that further build and enhance Botswana industries that transform the economy and return high yields that contribute towards the Vision 2036 ambition to realise a high-income country standing.
“Our journey has been a very rewarding one with many lessons learnt, and most importantly we have delivered strong returns to our shareholder. The Botswana Government’s continued support of our strategy has been pivotal to our success. It has been a great pride to serve this nation through investing in the building of viable Botswana industries for almost 50 years and we are successfully positioned to deepen our impact in the Botswana economy,” said BDC Acting Managing Director, Moatlhodi Lekaukau.
“With the Beyond 2019 strategy we are confident to continue on this positive trajectory into the coming periods. We are thankful to our staff, clients, partners, our shareholders and wider stakeholders for their continued support.”