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The Botswana Development Corporation (BDC) will soon pay dividend to its shareholder - the Botswana Government – after staying close to 10 years without doing so. “We are extremely pleased to be able to declare and pay a divided to our shareholder – the last dividend pay-out having been in 2008. We are thankful to the support we have received from the shareholder as represented by the Ministries of Investment Trade and Industry and Finance and Economic Planning,” said BDC Managing Director Bashi Gaetsaloe. This was shared at a stakeholder briefing session in Gaborone on Tuesday. Although he could not say the exact date and how much the payout will be, Gaetsaloe stated that all this will be agreed at the corporation’s Annual General Meeting (AGM) soon. “We look forward to working with all our stakeholders to build not only a profitably BDC, but more importantly, to build a more competitive and prosperous Botswana,” he added. Gaetsaloe also shared progress on the Corporation’s undertakings made in alignment with BDC’s strategy while Chief Financial Officer (CFO) Mbako Mbo presented the financial results for year ended 30 June 2016. “The dividend payout is enabled by the amount of distributable reserves that the corporation currently has,” Mbo said.
BDC is half way into its 5-year strategy, and according to the Managing Director the end of the 2016 financial year marks the midpoint of the strategy. He said in the just concluded first half focus was on business transformation initiative and consolidating the kind of outcomes that have realised increased growth from their portfolio. “Looking ahead, our focus is now on investing into new ventures to expand and solidify our portfolio, while in turn accelerating our contribution to Botswana’s economic development and diversification. We have an extensive pipeline of earmarked investments existing which we are confident will contribute significantly to Botswana’s development agenda, whilst at the same time providing satisfactory financial returns to our main shareholder,” said Gaetsaloe. As BDC is mandated to deliver both a financial as well as a development return to the shareholder, Gaetsaloe reported that in this current financial year they have managed to achieve both of these priorities for their shareholder. This, he said, was not only realised through profits, but they have also created 830 new jobs while sustaining 4793 net jobs across their portfolio of companies. In the year just ended, according to the MD, BDC approved funding of P588m for new projects which contributed to diversification of the economy, generated exports and expanded the private sector.
Key financial highlights
• Overall profit before tax stood at P224 million, a 104% increase.
• Total revenues increased by 24% to P384 million.
• Revenues from operations at P262 million, a 35% increase.
• Company asset growth experienced a 9% rise.
• BDC Group assets grew 6% to P4.4 billion