Overview

The Botswana Development Corporation (BDC) is Botswana’s principal agency for industrial, commercial, and economic development. Established in 1970 under the Companies Act as a company limited by shares, it is wholly owned by the Government of Botswana. BDC operates as a development finance institution (DFI), providing investment capital, debt financing, and other structured financing for commercially viable projects.

Mandate, Vision & Mission

Mandate: To drive industrialization and economic diversification in Botswana by supporting commercially viable projects that create jobs, unlock value in existing industries, foster linkages with local businesses, boost exports, and pioneer new industries.

Vision: To be an innovative and sustainable development finance institution.

Mission: To finance and support commercially viable enterprises that contribute to sustainable development and economic growth in Botswana.

Scope of Activities & Sectors

BDC invests in and supports projects across a wide range of sectors, excluding large-scale mining. Its focus areas include:

Manufacturing and industry

Agriculture and agribusiness

Services

Property and infrastructure

Energy

Financing instruments include debt, equity, mezzanine financing, and structured deals.

History & Evolution

Early years (1970s–1980s): Began with a small number of investments, aligned with government development plans, and recorded profitability in many early years.

2000s–2013: Experienced challenges such as project failures, over-concentration in property, rising debt, and weak risk management.

2014 onwards (“New BDC”): Underwent reforms to strengthen governance, improve portfolio performance, and realign with national development priorities.

Governance & Structure

BDC is a company limited by shares, fully owned by the Government of Botswana. It is governed by an independent Board of Directors, with a non-executive Chair and a Managing Director responsible for daily operations. The corporation operates on commercial principles while balancing development objectives.

Financial & Operational Highlights

BDC manages a portfolio worth several billion Pula across multiple investments. It generates revenue from investment returns, loan interest, and related financing activities, using both debt and equity instruments to support projects.

Strengths & Contributions

Economic diversification: Reduces reliance on mining by investing in non-mineral sectors.

Job creation: Supports employment growth through investments in manufacturing, agriculture, and infrastructure.

Local industry development: Encourages linkages with local suppliers, skills development, and value addition.

Challenges

Project failures: Some past investments have underperformed, often due to weak commercial risk management.

Balancing returns: Struggles with aligning financial returns and social impact, especially in projects with strong development value but low profitability.

Financial sustainability: Needs to manage debt, asset quality, and profitability carefully.

External risks: Vulnerable to economic downturns, global market shifts, and competition for investment capital.

Recent Developments

BDC has returned dividends to the government in recent years, reflecting periods of profitability.

It has also participated in major international investment deals, such as large-scale partnerships in infrastructure, energy, agriculture, and tourism.