The Role of Botswana Development Corporation in National Development

Botswana’s use of Development Finance Institutions (DFIs) as key policy instrument in driving development has largely been a success, right from the nation’s independence from Britain in 1966 to date. Emerging over time, DFIs in Botswana were set by instruments of law (Company law, or by a specific act of Parliament), each with a well-defined mandate with care taken to avoid overlaps between institutions. This chapter focuses on Botswana Development Corporation (BDC), a DFI set up in 1970 as a private limited company, under the Companies Act but wholly owned by Government. The Corporation evolved through distinct but interrelated phases of organisational growth, from infancy right into rapid growth, veering into a series of missteps along its investment and risk management journey and quickly finding its feet back through decisive transformation action plan. Among others, the chapter illuminates the need to align a change in strategy with core capabilities and operational policies in a coordinated fashion, the positive outcomes of a non-interference stance by government and the fundamental importance of good governance in performance of DFIs.