Botswana Development Corporation Limited (BDC) has confirmed the departure of its Managing Director, Cross Kgosidiile, who exited after nearly five years steering the state-owned investment firm. BDC says in the interim, its Chief Financial Officer Benedicta Abosi will take over as managing director, on an interim basis.
Kgosidiile’s departure coincides with a bruising financial setback for BDC. The corporation reported a P34 million loss for the six months ending December 2024, reversing a P43 million profit from the same period a year earlier. Total income slid 14 percent to P 233.3 million, hit by declining trade revenue and rental income, while operating results swung to a P27.6 million loss from a P61.8 million profit in December 2023.
The state owned corporation is also wrestling with escalating finance costs, which jumped to P96.7 million amid higher interest rates and increased borrowing. Expected credit losses soared to P27.5 million, nearly five times the prior level, signaling stress in its manufacturing and property investments. Total assets dipped to P5.67 billion, and cash reserves fell to P138.6 million from P194.9 million in June 2024. Despite a rise in net cash from operations to P83.1 million, financing outflows of P279.2 million highlighted debt repayment pressures.
To bolster its finances, BDC is considering a new unlisted Pula debt securities issuance, with a possible offshore component, separate from its existing P1 billion Botswana Stock Exchange-listed note program. The company has held talks with domestic and international investors following its 2024 audited results, though terms are yet to be finalised.
BDC has been mandated to lead investment on behalf of the government as well as play a vital role in promoting private sector development in the country. With just under 11 years to 2036, a year in which Botswana has set a target to attain high-income country status, BDC has been eyed to play a critical role to ensure that the nation becomes inclusive, amongst other things.
