Botswana Development Corporation (BDC) swung back into profitability at group level for the year ended 30 June 2025, reporting a profit before tax of P26 million, compared to a loss of P41 million in the previous year, despite a challenging domestic and global economic environment.
Group revenue rose by 27% to P787 million from P621 million, driven largely by fair value gains on property following the adoption of the fair value measurement basis, as well as income from partial divestments of mature investments. Total income growth was also supported by stable dividend flows from key investee companies and an improved performance from equity-accounted investments, which contributed P61 million to earnings
At company level, however, BDC remained loss-making, posting a loss before tax of P171 million, broadly in line with the prior year’s P175 million loss. Company revenue edged up to P437 million from P415 million, supported mainly by gains from divestments, although interest income declined slightly due to the deferral of some planned investments into the next financial year
Operating expenses at group level increased to P302 million from P253 million, partly reflecting higher administrative costs, including a once-off settlement discount related to the disposal of an investment. Finance costs declined to P187 million from P212 million, benefiting from delays in the drawdown of approved funding facilities, with some borrowings only being accessed after year-end
Expected credit losses fell sharply, with group impairments declining to P129 million from P175 million in the prior year, reflecting progress in recovery efforts on BDC’s largest foreign-currency exposure. The Corporation also recorded a significant negative fair value movement on certain debt instruments, mainly linked to an investment in the coal mining sector, which was affected by adverse weather conditions and weak regional coal prices.
BDC’s balance sheet remained broadly stable, with total group assets increasing marginally to P5.8 billion. Investment assets declined slightly, largely due to impairments and planned divestments, while cash balances fell as the Corporation settled liabilities and navigated tighter liquidity conditions in the economy.
Net worth improved modestly during the year, supported by a P200 million capital injection from the shareholder, lifting group equity attributable to owners to P3.0 billion. Total borrowings declined following the settlement of existing debt obligations, with BDC maintaining timely debt servicing throughout the period.
The results come against the backdrop of a difficult macroeconomic climate, with Botswana’s economy contracting in 2024 due to weak diamond sales and the International Monetary Fund projecting a further contraction of 0.4% in 2025. Inflation remained below the Bank of Botswana’s medium-term target range for most of the year, although exchange rate adjustments announced after year-end are expected to push inflation higher in the near term
Despite the headwinds, BDC continued to advance its development mandate. During the year, the Corporation approved P417.9 million in funding for projects in vehicle components manufacturing, banking and information technology. Notable milestones included the turnaround of Lobatse Clay Works and the expansion of Delta Automotive Technologies, which secured contracts to manufacture wiring harnesses for Nissan and Volkswagen, strengthening Botswana’s position in the regional automotive value chain.
Looking ahead, BDC said it is repositioning itself into a purpose-driven, impact-focused investment institution, with a short-term investment pipeline of P1.2 billion and medium-term projects valued at P3 billion across sectors including renewable energy, cement manufacturing, pharmaceuticals and beneficiation. The Corporation has also signed an agreement with Al Mansour Holdings for a proposed $12 billion investment programme spanning infrastructure, energy, mining and manufacturing.