Frequently Asked Questions

• Does BDC give preferential consideration to foreigners?
  BDC’s mandate is to provide assistance to investors with commercially viable projects. It also has an added role of encouraging citizen participation in business ventures.
  
  
• Will BDC take an unnecessarily long time to consider my project proposal?
  BDC has certain policies and procedures to follow in evaluating and appraising projects, but there will be no unnecessary delays.
  
  
• Will BDC allow me to independently run the business once it has been funded?
  BDC is not involved in the day to day running of their funded projects. However in equity participation ventures, the Corporation will appoint director(s) to the board, who monitor and play an advisory role. BDC’s Policy is to divest itself of interests in companies where possible.
  
  
• Will BDC consider a project, if it is already assisting a company in the same sector?
  BDC has interests in a number of competing companies.
  
  
• Does BDC demand equity in funded companies?
  BDC's financial assistance either in the form of equity, loans, or a combination of both is decided together with the project sponsor.
  
  
• Will BDC demand control over the running of my company?
  BDC Limits itself to arms-length dealings and prefers to allow you to run your company.
  
  
• Will BDC demand a controlling stake in my company?
  When BDC takes equity in a company, it prefers a shareholding of more than 20 percent, but less than 50 percent.
  
  
• Can an investor buy back the shares held by BDC?
  In line with its divestment policy, BDC will sell back shares to the project sponsor, once it deems it appropriate to do so.
  
  
• Will BDC assist me with 100% of the project cost?
  Whether the project sponsor requires a loan or equity, BDC expects a minimum contribution of 25% of the total project cost.
  
  
• Does BDC fund new projects only?
  BDC funds both new and expansion projects.
  
  
• Does BDC give out grants to companies?
  BDC does not offer grants. As government’s investment arm, the Corporation has to gain returns on its investments.
  
  
• Does BDC have preferred locations for its projects?
  No. BDC assists projects based on viability and sustainability, and currently it has projects in different parts of Botswana.
  
  
• Can BDC assist in expanding business outside Botswana?
  BDC’s role is to stimulate domestic growth and assist in projects that create employment for Batswana, therefore its operations are confined to Botswana.
  
  
• Will a project be considered more favourably if you know the right person?
  BDC assesses projects on their commercial viability and their developmental value - irrespective of who the sponsor(s) is/are.