The African Development Bank (AfDB) and the Botswana Development Corporation (BDC) signed a Line of Credit (LOC) totalling $80 million to help scale up key investments in Botswana.
The AFDB said in a statement that the Botswana Development Corporation will only lend to specific target groups, focusing on industrialisation including transport, manufacturing and service sectors that have important development impact.
The repayment period will be over 10 years, including a two-year grace period.
"The African Development Bank is excited to collaborate with BDC to promote private sector development, as well as support broad-based economic growth in Botswana," said Mohamed Kalif, Manager, Financial Intermediation and Inclusion Division signing on behalf of the Bank.
Kalif said that the facility is the largest to be extended to a financial institution in Botswana and that the Bank is very proud of its partnership with BDC, Botswana's main development finance agency. The institution is also one of the largest investors and a key promoter of the country's industrialisation agenda.
This support will contribute immensely to Botswana Development Corporation efforts to expand access to credit for transformative sectors in the country, thereby contributing to building resilience and diversifying the economy. The loan "will contribute positively to growing the manufacturing sectors as well as reduce funding constraints on local enterprises," Kalif added.
The facility will also be used to promote private sector development and to foster broad-based economic growth through increased productivity, job creation and to enhance household incomes. It will complement Botswana's government efforts to expand, diversify and transform the economy and support value chain projects that enhance regional economic activities.
BDC is mandated to invest locally and outside of Botswana, linking local businesses with intra-Africa enterprises. to support industries and logistics enterprises, the company is a key player in the development of industrial parks and warehousing facilities.
The company's goal is to promote and facilitate the development of commercial, industrial and agricultural enterprises in line with Botswana's government plan for economic development.