The African Development Bank (AfDB) has joined forces with development financial institutions across the continent to roll out interventions that could see tables turning for economies that remain un-diversified.
In Botswana, AFDB has issued a thematic Line of Credit of P900 Million to Botswana Development Corporation (BDC) that is expected to boost the non-minerals sectors and ultimately diversify the economy. The pan African development bank is said to have set criteria for the type of projects that are to be funded. BDC says the projects are in sectors set to expand Botswana’s economy.
Boitshwarelo Lebang – BDC’s Head of Corporate Affairs and Strategy says local companies that will benefit from the AFDB credit line must meet the criteria set by the bank.
“AFDB has criteria set for the type of projects that are to be funded – these are projects in sectors that are to expand the economy of Botswana. Companies that are funded would have to meet this criterion of economic transformation and then go through our standard investment appraisal.
The LoC will support the Corporations’ long-term strategy to scale up its investments in key sectors including manufacturing, transport and service sectors, with the overall objective of supporting the transformation and industrialisation of the Botswana economy”, said Lebang last Friday.
Botswana has in the past received many calls on the need to disentangle its economic diversification and track it with monitoring and evaluation of programmes. With a high rural share of employment and the potential for broad-based employment impact, the agriculture sector has been identified as critical for diversification and poverty alleviation in the country.
Meanwhile, Lebang said as part of the AFDB financing, the bank will provide support in the form of a grant to be provided by Affirmative Action for Women in Africa (AFAWA) to finance women enterprises. Lebang said the BDC would follow its standard appraisal method in selecting companies.