BDC targets P5.5bn in investments and 25,000 jobs by 2031
Botswana has over P158 billion in pension assets, but only 45% of it is invested at home.
The Botswana Development Corporation (BDC) plans to deploy P5.5 billion into priority sectors and support the creation of 25,000 jobs by 2031. Managing Director Oteng Keabetswe set out the strategy at the BDC Investment Forum on Thursday.
Keabetswe described a "capital paradox" in which Botswana has plenty of savings but little capital reaching productive businesses. Private sector credit stands at about 30% of GDP, against 55% in comparable regional economies, and less than 5% of capital goes into private equity and venture capital.
Requirements for pension funds to invest about 50% of their assets domestically by 2027 could channel roughly P8 billion back into the economy, Keabetswe said. The BDC's targets depend partly on unlocking that domestic capital for businesses able to expand production.