The Botswana Development Corporation (BDC) is aiming to raise its image within the mining sector through its new strategy that will see it pouring lots of money into the sector.
The new strategy is also expected to answer calls aimed at boosting the fledgling Botswana Stock Exchange (BSE), which is dogged by the issue of illiquidity. As part of the strategy, it will divest from some of its subsidiaries through listing them on the BSE.
According to the new strategy, which started last month, the government investment arm said that it was planning to introduce new divisions which would be geared towards developing an interest into mining.
“BDC Limited recently launched a new strategy which runs from July 2007 to June 2011. The strategy is underpinned by the corporation’s strategic aim, which is to pro-actively contribute to the diversification of the economy by investing into commercially viable and sustainable business,” it said.
The move by the organization is prompted by a renewed interest in the mining sector driven by commodity prices and demands in the Asian countries – especially China and India. China is fast modernizing its economy and it is thought that it will be the world’s leading economy within the next 10 years. China is currently rated among the top 5 countries after, USA, Japan, Germany and Britain.
“In order to deliver on this aim, a new marketing and research function will be established to identify investment opportunities and generate project profiles and feasibility studies for development into viable business ventures,” BDC said.
It stressed that part of the aim would be to look into beneficiation in mining and other natural resources.
Over the period, it said, it also aims to engage in infrastructure development with some strategic partners while at the same time pointing out that it is well positioned financially as it can draw cash from government.
“BDC may solicit extra funding from government for large scale business opportunities as they arise,” it said, adding that it would try to give priority to citizen projects.
“As part of the corporation’s initiative to encourage citizen participation in the national economy, BDC will be eager to support and assist companies especially citizen companies that will be involved in opportunities arising from privatization,” BDC stated.
“We will assist citizens in management buy-out and investigate possibilities of divesting from subsidiaries through the listing of their shares on the Botswana Stock Exchange,” the corporation said.
Further, BDC intends to take a bold move by assisting Botswana companies to increase their image across Africa and other parts of the world in an attempt to take advantage of the benefits in the international economy.
“The challenge facing our local business today is to transform them from being inward looking with the domestic market focus to being outward looking with emphasis on increasing Botswana’s external market share,” BDC chief executive officer, Ken Matambo said. This, I believe, will go a long way in reducing the private sector’s dependence on government and will also address the problems of small domestic market.”