The government investment arm, Botswana Development Corporation (BDC) says its strategic plan centres on a single, unifying strategic goal of “doubling the business in five years”.
BDC’s youthful Chief Executive Bashi Gaetsaloe says going forward BDC will focus on commercially viable projects that pioneer new industries, unlock value in existing industries, stimulate private sector growth and linkages as well as driving diversification and exports and creating significant employment.
“BDC’s business re-modelling programme began in October 2013. This unprecedented exercise looked at ways to nurture a new corporate culture and introduce new ways of working, partnering, and executing,” says Gaetsaloe.
He added that implementation of the programme begun in April 2014 with the objectives of reducing wastage, preserving cash, preserving the integrity of the balance sheet, and creating a platform for sustainable and viable growth.
“BDC has a new mandate of cross border financing which allows the Corporation to invest in viable projects outside the country,” Gaetsaloe state.
Meanwhile BDC Chief Financial Officer (CFO) Magdeline Tsiane said on Friday that the Group’s financial performance showed steady gains during the year that ended June 2014.
The Group realised a Profit before Tax (PBT) of P35.7million representing a 166 percent increase over the prior year. The Group’s statement of financial position also grew by a healthy 15 percent to P3.6 billion from P3.2 billion while the net assets of the company were P2.5 billion, a 12 percent increase from the previous year.
She highlighted that revenue for the BDC Company grew from P101.7 million to P150.4 million representing a 48 percent increase from the previous year adding that the group’s revenue, however, declined by 10 percent from P317.9 million in the previous year to P286.8 million in the current year.
“The slow-down in revenue at the group level reflects the challenges and changes that the organisation is managing within its subsidiary and associate company structures,” said Tsiane.
At a company level, she pointed out that BDC experienced a loss before tax of P67.1 million against a loss before tax of P222.2 million in the previous year. “This loss at a company level is substantially less than the loss in the previous year and is reflective of key initiatives to manage operating costs and improve collections”.
She expressed satisfaction that despite incurring expenses of the remodelling exercises; total expenses for the Corporation were reduced by 25 percent which she added were reflective of key initiatives to manage operating costs.
“We initially had a budget of P38.5 million for the restricting process as well as consultancy. While business recorded a loss for the year under review, we are encouraged by the fact that this loss continues to shrink,” said Tsiane.