The Botswana Development Corporation (BDC) has outlined an ambitious repositioning agenda after a financially mixed 2025, as the state-owned development financier moves to transform itself into a large-scale investment institution capable of driving Botswana’s industrialisation and long-term economic sovereignty.
In its 2025 Annual Report, themed “Shaping Tomorrow, Delivering Today,” BDC said the year was shaped by global economic uncertainty, subdued domestic growth, and structural pressures linked to weak diamond demand. Against this backdrop, the Corporation adopted a cautious investment posture while strengthening governance, balance sheet resilience and its strategic pipeline.
BDC ended the financial year with total group assets of P5.8 billion, up from P5.7 billion in 2024, while shareholder net worth increased 11% to P3.0 billion at group level. At company level, shareholder value rose to P2.2 billion, supported in part by a P200 million capital injection from the Government of Botswana, which the Corporation described as a vote of confidence in its long-term repositioning.
Group revenue grew strongly, rising 27% to P787 million, compared to P621 million the previous year. Company revenue also increased by 5% to P437 million. However, profitability remained under pressure. The BDC Group posted a modest profit of P15 million, while the company recorded a loss of P167 million, reflecting impairments and the underperformance of two key investments, including a large foreign-currency exposure and an investment in the coal mining sector.
Despite this, impairment charges declined significantly, with company impairments falling 44% to P119 million and group impairments down 26% to P129 million, indicating improved asset quality management in most parts of the portfolio. Net share of profit from equity-accounted investees rose sharply by 42% to P61 million, underscoring improved performance in some underlying investments.
BDC’s investment activity during the year was deliberately restrained. Total disbursements amounted to P44.3 million, well below prior-year levels and budgeted expectations. Management said this reflected disciplined capital allocation, with several potential investments abandoned after failing to meet the Corporation’s risk appetite. The largest share of new funding went into a major retail development in northern Botswana, expanding BDC’s geographic footprint.
Even with lower disbursements, the Corporation’s investment portfolio continued to grow. Portfolio value, excluding the Industry Support Fund, rose 6% to P5.4 billion, driven by new investments in manufacturing and retail as well as valuation gains in existing investees. However, non-performing loans increased sharply to 47%, largely due to a single large exposure that fell into default during the year. BDC said remedial action is underway and noted that excluding this exposure, NPLs would have stood at 17%, within acceptable thresholds.
Governance and leadership featured prominently in the year under review. BDC maintained full compliance with the King III Code on Corporate Governance, with the exception of two non-applicable principles. The Board, which comprises a majority of independent non-executive directors and has 54% female representation, underwent committee reconstitutions and inducted new members to strengthen oversight and reduce entrenchment.
The year also marked a leadership transition, with Benedicta Abosi assuming the role of Acting Managing Director in April 2025 following the departure of Cross Kgosidiile. In her statement, Abosi described 2025 as a turning point, signalling the beginning of BDC’s transition into what she termed a “mega investment company” — an institution designed to mobilise capital at scale, develop industrial clusters, and play a more assertive role in shaping national value chains.
At year-end, BDC’s investment pipeline stood at P1.21 billion, with projects spread across disbursement, legal close and approval stages. Management said this pipeline provides clear visibility for accelerated investment activity in the 2026 financial year, particularly in priority sectors such as infrastructure, energy and climate, agriculture, healthcare, financial services, and technology.
Looking ahead, BDC said its strategic focus will shift from selective deal-making to scale and execution. The Corporation plans to deepen partnerships, expand its regional footprint, and crowd in diverse sources of capital to support projects of national and economic significance.
“Transformation into a mega company is not aspirational; it is a structured, deliberate journey,” Abosi said, positioning BDC as a central instrument in Botswana’s economic diversification and industrial development drive.