BDC disburses P457 million into the economy

Botswana Development Corporation is pleased to release its Audited Annual Financial Statements for the year ended 30 June 2021. Despite the global pandemic, the Company was able to disburse a total of P457 million into the economy.

These disbursements were aligned to the strategic intent and steps were taken to identify opportunities that align with the Economic Recovery and Transformational Plan. A significant transaction was a strategic investment into an internationally recognised producer of convenience meal solutions for consumers throughout Sub-Saharan Africa and global markets. This investment will help build a resilient supply chain and safeguard food security for Botswana. Other disbursements made were in support of existing portfolio companies to boost operational resilience and strengthen the Company’s position.

The company was also able to execute its mandate in relation to the Industry Support Fund, having disbursed a total of P50 million in the year ended 30 June 2021. The Group and company financial year 01 July 2020 to 30 June 2021 represents the first full financial year in which COVID-19 was experienced and reflected in its results.

With exposures of the group in hard-hit sectors of the economy, the group numbers were affected significantly recording a loss for the first time in almost ten years. The company on the other hand managed to weather the storm by managing cashflows at subsidiary level and providing the appropriate type of support.

The company’s operating income increased by 14% from P225 million in the prior year to P257 million in the year under review. Operating expenses for the company show an increase due to activities that were curtailed in the last quarter of the previous financial year and taken on board in the first quarter of the year under review. The company also saw an increased impact of the tough economy through increases in unrealised losses on foreign exchange and on the valuation of investments. Commendably, the company managed to achieve a profit before taxation of P31 million despite the turbulent environment riddled with uncertainty. The balance sheet remained strong with total assets for the company at P4.5 billion and that of the group at P5.0 billion.

The annual report for the year ended 30 June 2021 is expected to be released before the end of the month of February 2022 and will provide significant insights into our results and performance for the year.