Botswana: African Development extends US$80m line of credit to help industrialization and regional integration

The Board of Directors of the African Development Bank Group (AfDB) has approved a USD 80 million line of credit to the Botswana Development Corporation Ltd (“BDC”) to help the country’s industrialization and regional integration.

The line of credit will be provided via the African Development Bank’s private sector window and will be used to finance local companies in Botswana’s manufacturing, transport, logistics, and services sectors. In total, the projects are expected to create between 2500 and 2800 jobs, including 1200 to 1300 for women, in particular in these sectors.

To diversify the country’s economic structure away from the mining sector, industrialization is the key to Botswana’s future. The Government has been developing eight special economic zones (SEZs) where more value-additions can be made for mineral beneficiation, auto/parts manufacturing and agricultural processing. However, access to finance for specific sectors such as new industrial projects and service companies remained limited.

The financial support provided by the African Development Bank will help mobilize the long-term financing required for economic diversification in the country, with an emphasis on increased exports and creating jobs. The proposed projects will also support regional integration as most of these products and services are exported in the Southern African Development Community (SADC).

Original source: AfDB
Published on 25 April 2019