Botswana-AFDB-Loan

AfDB offers Botswana line of credit to scale-up investments

APA-Gaborone (Botswana)

African Development Bank (AfDB) and the Botswana Development Corporation (BDC) on Thursday signed an US$80-million line of credit agreement to help scale-up key investments in the southern African country.

AfDB manager responsible for financial intermediation and inclusion Mohamed Kalif said the BDC would use the facility to promote private sector development, “as well as support broad-based economic growth in Botswana.”

“This support will contribute immensely to BDC's efforts to broaden access to credit for transformative sectors in Botswana, thereby contributing to building resilience and diversifying the Botswanan economy,” Kalif said during the signing ceremony in Gaborone.

The loan “will contribute positively to growing the manufacturing sectors as well as reduce funding constraints on local enterprises,” the bank official said.

BDC is expected to on-lend to private sector players focusing on industrialization, including manufacturing, transport and service sectors that have significant development impact.

Repayment would be over 10 years, including a two-year grace period.

BDC was established in 1970 to be the government’s main agency for commercial and industrial development.

KO/jn/APA

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