Botswana - Middle Income Countries Technical Assistance Grant to Botswana Development Corporation (BDC)


Project Summary

Approval Date 06 Dec 2016
Signature Date 27 Feb 2017
Planned Completion Date 31 Mar 2021
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 223,843
Status Implementation

Project General Description

This intervention relates to the Technical Assistance Grant to Botswana Development Corporation (BDC). It was designed as a result of the opening of a credit line of BWP 850 million (76.2 million) with a maximum term of 15 years (3 years grace period) requested by the Botswana Development Corporation (BDC). The African Development Bank's proposal for support to the BDC aims to strengthen a financial institution that plays a key role in Botswana's efforts to promote the private sector and diversify the economy and, at the same time, give the Bank visibility on the ground. The proceeds of the LOC will be on-lent to vital sectors in Botswana mainly through loans to finance new investments, with a focus on projects that need financing for their growth and that encourage local participation. The LOC will consolidate BDC's cash position and its ability to provide concessional financing to operators in its target sectors, such as agribusiness, clean energy and infrastructure. It will also allow BDC to expand its loan asset base and rebalance its portfolio by increasing the proportion of pure debt and quasi-debt, which will improve its cash flow.

Project Objectives

The objective of the project is to open a Botswana Pula 850 million (USD 76.2 million) sovereign guaranteed LoC for Botswana Development Corporation (BDC) with a maximum term of 15 years.

Beneficiaries

The main beneficiary of the line of credit is the Botswana Development Corporation (BDC). In addition, the line of credit will be on-lent to projects and companies in priority sectors in Botswana.

Participating Organization

Funding
Middle Income Countries Fund
Implementing
Botswana Development Corporation

Information

IATI identifier 46002-P-BW-HB0-004
Last Update 19 Oct 2020

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Contact Details

Name KOMA Baboucarr
Email b.koma@afdb.org

Geographic Location

Country Botswana