Mr. Bashi Gaetsaloe
The Botswana Development Corporation (BDC) has released its audited financial statements for the year ended 30 June 2015 that showed the state owned company is returning back to profitability. Presenting its financial results, BDC reported increased revenue and profit at both company and group levels.
“FY15 has been a very successful year for the Corporation. It marks the first year of our Transformation Programme and the first full year of our Strategic Plan,” said BDC Managing Director, Bashi Gaetsaloe.
“Throughout this year, we have been focused on implementing our Crisis Response Plan and our long term Strategic Plan – including: execution of our divestment strategy; increased monitoring of subsidiary performance; improvement of our origination and business development capabilities; adherence to risk and governance principles; and increased productivity driven by a growing culture of delivery and value creation.”
Gaetsaloe added that while they are still at an early stage, they believe plans are bearing fruit. “Our revenues at both Company and Group levels are up; Profit Before Tax is up; and expenses across both the Company and the Group continue to come down. At the same time, we have grown the group asset base to P4 Billion. All signs of the early success of our Transformation Programme.”
BDC’s audited financial statements show that it recorded an increase of 29% in company revenue to P194.4 million from P150.4 million made in the previous financial year. Group revenue also showed an increase of 19% from P286.7 million in the previous year to P339.9 million in 2015.
In the year under review Company Profit Before Tax increased to P109.8 million following a loss of P67 million in the prior year. At the Group level, Profit Before Tax grew to P247.3 million from P35.7 million in the previous year. During the same period expenses reduced by 28 % at Company level and by 41 % at Group level – showing a commitment to running a leaner and more efficient organisation.
The Corporation’s results come on the back of its wide-reaching Transformation Programme which included not only a review on the Corporation’s processes, structures and policies, but also a re-structuring of its balance sheet through a divestment strategy (targeting non-strategic assets) and a turn-around programme (targeting non-performing investments). The Corporation has also embarked on an extensive recruitment drive to build capacity around the areas of venture capital, development finance, risk management, governance, and business origination and financial analysis.
“Under the current Strategic Plan 5-Year Plan, we expect to double our business and make a meaningful impact towards industrialisation of Botswana. Pioneering new industries, promoting exports, creating jobs are all key priorities for our business and for our shareholder. That’s why we exist – to create an impact in the Botswana economy.
In addition, our mandate to invest outside Botswana opens new and exciting possibilities. We are seeking innovative and commercially viable ventures both inside Botswana and beyond our borders. Ultimately, the success of our economy will depend on our ability to not only drive meaningful exports, but also to invest outside of Botswana – and into bigger markets. We believe BDC can and drive this ambitious programme. Finally, BDC wishes to thank its many customers, its partners, and its shareholder who have supported our journey to date and who continue to do so.”
