BDC vows to rewrite Botswana’s economic script

Botswana is rewriting its economic script, and at the heart of this transformation is the Botswana Development Corporation Limited (BDC), under the stewardship of its relatively new Managing Director, Oteng Keabetswe. The contrast between past and present could not be starker. Historically, the BDC managed a portfolio of around P5 billion, which yielded a modest P50 million in revenue.

Today, just seven months into Keabetswe’s leadership, the corporation has injected P550 million into strategic investments, targeting a revenue of P73 million, a tangible leap that signals a break from old habits and a bold step toward revitalizing Botswana’s economic landscape. This transformation is part of a larger narrative driven by President Duma Gideon Boko’s vision for Botswana. Development, as Keabetswe emphasized in a recent editors’ roundtable, is a process, not a one-off event.

This ongoing process aims to secure a future where Botswana’s economy is more diversified, resilient, and inclusive. The BDC is positioned as a key vehicle to realize this vision, tasked with mobilizing capital to sectors that promise sustainable growth and job creation, steering the country away from its heavy reliance on diamond mining. Keabetswe’s presentation of BDC’s half-year financial results for the period ending December 2025 revealed a corporation in the throes of strategic repositioning.

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The legacy portfolio, burdened by non-performing loans and restricted cash flows, had long constrained income generation. These limitations made clear the urgency for a new approach—one that prioritizes liquidity, performance, and long-term value creation. The BDC is now embracing portfolio optimization, asset recycling, and targeted investments, while actively mobilizing off-balance-sheet capital and encouraging investor participation.

What stands out in this renewed strategy is the emphasis on impact investing. Keabetswe is steering BDC towards funding commercially viable projects that also deliver measurable social and economic benefits. This dual-purpose investment approach reflects a broader national development priority: building an economy that not only grows but also uplifts communities.

Sectors like agribusiness, energy, healthcare, financial services, and technology are the new frontiers, where BDC’s investments are expected to create over 1,000 jobs and strengthen domestic value chains. The numbers speak volumes. During the last half-year, BDC deployed approximately P250 million into priority sectors, with cumulative investments reaching about P550 million over seven months.

These investments are projected to generate stronger returns, a clear indication that the new strategy is more than just rhetoric. The corporation also reported a group income of about P208 million and a bolstered cash position nearing P535 million, underscoring enhanced financial discipline and liquidity management. This shift at BDC parallels Botswana’s broader economic strategy for 2026, which seeks to pivot away from diamond dependency toward private sector-led growth and diversification.

The government’s 2026/27 agenda focuses on supporting enterprises that can drive export-led growth and build resilience against external shocks. Public-private partnerships and targeted support for scalable firms are cornerstones of this strategy, reflecting a shared understanding that sustainable development demands a vibrant, competitive private sector. Non-performing loans (NPLs), a persistent challenge for Botswana’s financial sector, have been a drag on economic progress.

While Botswana’s NPL ratio remains relatively low compared to regional peers, its legacy portfolio at BDC reflected similar issues, limiting cash conversion and income. The corporation’s pivot includes aggressive measures to address these financial weaknesses, ensuring that future lending and investment adhere to stricter risk management and commercial viability standards. Keabetswe’s vision for BDC is ambitious: to evolve into a purpose-driven institution capable of mobilizing capital at scale, supporting both emerging and established enterprises, and delivering consistent returns for Botswana’s government as the shareholder.

This vision acknowledges the need for financial sustainability alongside developmental impact, a balance that many state-owned entities struggle to achieve. The roundtable discussion also highlighted the importance of transparent and nuanced communication with the media. BDC recognizes that accurate reporting is essential to build public trust and support for its initiatives.

As Botswana charts this new course, the stakes are high but the promise is profound. The government’s economic diversification efforts, supported by strategic investments from BDC, have the potential to redefine the country’s economic trajectory. The success of this transformation will depend on sustained commitment, both from public institutions and private partners.

Keabetswe’s leadership at BDC is a beacon of this commitment, demonstrating that with clear strategy, disciplined execution, and a focus on impact, Botswana can move beyond its historical constraints. The era of sitting on a P5 billion purse to generate mere millions is giving way to a dynamic phase where investment decisions are informed, purposeful, and aligned with national priorities.

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