BDC Continues to Lead Botswana’s Industrialisation Efforts
Established in 1970 as the main investment arm of the Government, BDC which provides debt and equity funding to investors (Local and Foreign) for commercially viable projects, continues to lead in efforts to diversify and transform Botswana’s economy through investment in the manufacturing sector.
BDC’s contribution has permeated every major industry in Botswana over the past 50 years and has been responsible for the inception of some of the major industry-transforming companies.
One such project is Pasdec -which was founded in 1987 as a manufacturer of automotive electrical harnesses for Original Equipment Manufacturers (OEMs). In 2013, the company made a consideration to relocate its manufacturing plant to Botswana. In 2015, Pasdec Automotive Technologies (Botswana) Pty Ltd was incorporated to hold the Lobatse manufacturing and assembly operations. BDC saw an opportunity to partner with Pasdec which was bringing diversity to the Botswana economy and the manufacturing sector, creating economic activity and jobs for the Lobatse area.
The manufacturing plant is purpose-built and accommodates both high volume production lines and lesser volume jobbing shop-type orders. The 20 000m2 plant is designed for current demand and future growth opportunities.
It is through projects of this nature and magnitude that BDC reiterates its commitment to fundamentally contributing to the development of a viable, competitive, and profitable manufacturing industry in Botswana, and subsequently, drive an export-led economy.
BDC's mandate has always been to drive the industrialisation of Botswana by investing in scalable and commercially viable projects, and Pasdec is one such project that speaks true to BDC's mandate. The Corporation is taking a long-term strategic view on the business, with the equity investment, which will strengthen its balance sheet and position it for growth.
Pasdec has potential for further growth, contributing towards economic activity, export promotion and job creation for locals. Its success will also further make Botswana an attractive investment destination.
Pasdec has contributed to the diversity of the manufacturing sector in Botswana, currently serving three leading vehicle Manufacturers. The company has had a good reputation for high-quality harnesses and long-standing supplier relationships. Furthermore, it has received world-class global accreditation. Pasdec’s competitive advantage has also created an opportunity to diversify into heavy-duty commercial vehicle aftermarket and future expansion to other vehicle components.
Through its operations, Pasdec has created well over 600 jobs for Batswana and has implemented high standards of employee training, to ensure that its human capital assets possess the requisite skills to execute their roles and can compete at a global level. The company also has an opportunity to double the number of jobs by increasing its business.
BDC was formed to promote and facilitate the development of industrial, commercial, and agricultural enterprises within the framework of the Government's plan for economic development, providing funding to businesses at a minimum of P30million. The Corporation is a key player in all sectors of the economy, except large scale mining, providing funding to commercially viable projects that perform one or more of the following functions:
- Pioneer new industries;
- Unlock the value in existing industries;
- Stimulate private sector growth and foster linkages with the local industry;
- Drive diversification and exports;
- Create significant employment.
Over the past 50 years, BDC has proudly implemented a robust investment philosophy and process, that has allowed the Corporation to invest in scalable and commercially viable projects that have not only developed Botswana but also transformed the economic landscape. BDC intends to continue growing all sectors, identifying and unlocking new and unique opportunities that lie ahead.
BDC remains committed to another 50 years of deeply integrating Botswana into the global economy through investments and partnerships of this nature.