Botswana Development Corporation (BDC) has returned to profitability, posting a P37 million profit for the year ended 30 June 2025, compared to a P53 million loss in the prior year, as improved investment income and divestment gains offset impairments and debt pressures.
Group consolidated revenue rose 29% to P802 million from P621 million in 2024, largely driven by fair value gains on investment properties and higher rental income. At company level, revenue grew 5% to P437 million, buoyed by partial exits from mature investments.
BDC’s profit before tax jumped to P52 million, a sharp turnaround from a P41 million loss in the previous year. However, the holding company alone remained in the red, reporting a P156 million loss before tax, albeit narrower than the prior year’s P175 million shortfall.
The improvement came despite significant impairments and write-downs. The Corporation booked P137 million in expected credit losses, mainly linked to foreign-currency exposures and struggling debt instruments in the coal sector. BDC said recovery efforts on these exposures are ongoing.
Operating expenses increased marginally at group level to P289 million, while finance costs dropped to P192 million due to delays in drawdowns of approved funding facilities.
The balance sheet remained resilient, with total assets slightly up at P5.8 billion. Shareholders’ equity grew 13% to P3.0 billion, supported by a P200 million capital injection from government, BDC’s sole shareholder.
Caretaker Managing Director Oteng Keabetswe said the Corporation maintained financial stability in a challenging environment marked by weak diamond sales, rising interest rates, and subdued liquidity in the banking sector.
“Despite macroeconomic headwinds, we continued to deliver on our mandate by investing in transformational projects that diversify Botswana’s economy and create quality jobs,” Keabetswe said.
During the year, BDC approved P417.9 million in new investments, including vehicle component manufacturing, banking, and IT ventures. Notably, its subsidiary Delta Automotive Technologies secured contracts to supply wiring harnesses for Nissan and Volkswagen, employing over 300 people, mostly locals.
Looking ahead, BDC said it is repositioning as an “impact-focused mega investment company,” with a short-term pipeline worth P1.2 billion and medium-term projects of P3 billion in agribusiness, energy, healthcare, cement, pharmaceuticals, and industrial hemp. The Corporation has also partnered with Al Mansour Holdings in a planned $12 billion investment drive across infrastructure, mining, and manufacturing.