Botswana Development Corporation (BDC) has reported a P24.1 million loss before tax for the six months ending December 31, 2024, a sharp decline from the P44.1 million profit it posted in the same period last year. The slump comes as total income at the group level fell by 14% to P233.3 million, dragged down by weaker trade income and a drop in rental earnings.
While the group struggled, the company's individual performance showed improvement, turning around from a P31.4 million loss last year to a P25.6 million profit before tax. The improvement was largely due to stronger performances from its investment companies, which paid out dividends, and gains from selling some of its listed equity securities.
Tough Conditions Impact Revenue
BDC’s income from trade remained relatively flat at P47.4 million, down slightly from P47.9 million in the prior period. However, its rental income fell by 21% to P24.3 million, reflecting challenges in the property sector. The corporation also faced rising operating expenses, up 24% year-on-year, partly due to efforts to relaunch and market its businesses.
Adding to the difficulties, BDC booked higher expected credit losses of P27.5 million, up from P5.8 million a year earlier, as it continued efforts to recover funds from a struggling investment.
Investment Gains Offer Relief
Despite the losses, BDC saw some bright spots. Interest income from loans rose 6% to P113.2 million, as the corporation continued funding new investments in commercial real estate. Gains from divesting some listed equity securities also boosted other income and helped strengthen liquidity.
BDC’s total assets stood at P5.67 billion, slightly down from P5.74 billion in the prior period. The decline was mainly due to lower cash balances following loan repayments and writedowns on underperforming investments. Borrowings also fell 5% to P1.9 billion, as the corporation continued to service its debt.
Looking Ahead: A Focus on Growth
Despite the financial setbacks, BDC remains optimistic about its long-term strategy. The corporation is looking to invest P2 billion in new projects, targeting high-value manufacturing, renewable energy, and ICT sectors. Plans are also underway to establish an Asset Management Company, which will allow BDC to access third-party funding for new ventures.
“While we faced challenges in the past six months, we are positioning ourselves for long-term growth,” BDC said in a statement. “We are committed to driving Botswana’s economic transformation through strategic investments.”