Thursday, September 24, 2020

BDC TO mobilise P3 billion for Domestic Investment

The government investment arm – the Botswana Development Corporation (BDC) is expected to mobilise a total of P3 billion as part of government’s strategy to boost domestic investment during the last half of the National Development Plan 11 (NDP 11), the Trade, Investment and Industry Minister – Peggy Serame has said.

Briefing Parliament on Monday during the NDP 11 Midterm review, Serame said that BDC will be expected to invest in projects that will ensure economic transformation, diversification and increase citizen economic participation.

Parliament was also told that in the next twelve (12) months, BDC will invest approximately P800 million on project that will drive economic recovery and sustain jobs.

The government says it is intending to establish large-scale equipment manufacturing industry to support key sectors such as rail, energy and water. 

“Other projects that are planned to be undertaken include increasing Automotive Components manufacturing; increase food production such as for Potatoes and Citrus, to meet local demand; increase milk production to meet full local demand with vertical integration on milk products (such as yogurts and cheese).”, said Serame Monday afternoon.

Recently details emerged on the move by the BDC to turn its investment in Pasdec Botswana into equity, opting to grab the large share of the company.

In a merger notice that is before the Competition and Consumer Authority, BDC intends to acquire 60 percent shareholding Pasdec Automotive Technologies Botswana, the company that the state agency lured from South Africa in 2015 to come set up its automotive wiring harnesses manufacturing business in Lobatse.

Pasdec Botswana is wholly controlled by Pasdec Resources SA Ltd, a South African based company, which is in turn controlled by Pahang Off-Shore, a Malaysian registered company. BDC has in the past five years injected P130 million in Pasdec Botswana and will now be turning the convertible preference shares into equity.

RELATED STORIES

Read this week's paper

Masisi creates his own “deep state”?

The government enclave is discussing a new law that will expand the president’s overreach and make it easier for the Directorate of...