The African Development Bank (AfDB) and the Botswana Development Corporation (BDC) have signed a line of credit totalling $80-million to help scale up key investments in the Southern African country.
BDC will on-lend to specific target groups, including the manufacturing, transport and service sectors that have significant development impact.
Repayment will be over ten 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,” says financial intermediation and inclusion division manager Mohamed Kalif.
He notes that the facility is the largest to be extended to a financial institution in Botswana.
The loan “will contribute positively to growing the manufacturing sectors, as well as reduce funding constraints on local enterprises,” Kalif posits.
The facility will also be used to promote private sector development and to foster broad-based economic growth through job creation, increased productivity and to enhance household incomes.
It will complement the government of Botswana’s efforts to diversify, expand and transform the economy and support value chain projects that enhance regional economic activities.