Key Benefits:
3. Establishment of the National Development Bank
(1) There is hereby established a bank, to be known as the National Development Bank, for the purpose of promoting the economic development of Botswana in accordance with the provisions of this Act.
(2) The bank shall be a body corporate capable, under the said name, of suing and of being sued, and with power, subject to the provisions of this Act, of doing anything and entering into any transaction (whether or not involving expenditure or the acquisition or alienation of property) which bodies corporate may by law do and enter into, which is incidental or conducive to the carrying on of its business under this Act.
(3) The provisions of the First Schedule shall have effect with respect to the bank.
(1) The business of the bank shall, subject to the provisions of this Act, be to provide financial assistance, for the purpose for which it is established, to new or existing undertakings to which this section applies by means of-
(a) the granting of loans;
(b) the selling of goods, and the taking over of sellers' rights, under hire purchase or instalment sale agreements; and
(c) with the approval of the Minister, the taking up of share and loan capital and the underwriting of issues of shares and debentures.
(2) This section applies to any undertaking falling within one or more of the following classes, that is to say-
(a) agricultural undertakings;
(b) industrial undertakings;
(c) undertakings for the working or getting of minerals;
(d) undertakings for providing, maintaining or improving the supply of water or electricity, and other utilities, whether of a public or private nature;
(e) undertakings for providing, maintaining or improving transport facilities or transport services;
(f) undertakings for the provision or improvement of houses or other dwellings;
(g) undertakings for the promotion of tourism and for the keeping of hotels;
(h) undertakings for the utilization of the wild animal life of Botswana;
(i) undertakings for purchasing, processing, storing or marketting any products of one or more enterprises falling within any of the foregoing paragraphs;
(j) undertakings for the sale of goods, whether retail or wholesale, or for the distribution of goods;
(k) undertakings for the carrying out of building, engineering or other operations in, on, over or under land;
(l) undertakings comprising the service industries;
(m) the provision, assistance or promotion of human development;
(n) the lease, purchase or hiring of motor vehicles or plant machinery.
(3) Notwithstanding anything in subsection (1), the bank shall not provide financial assistance for buildings or works for the public service of Botswana, except where the same may arise from and be incidental to assistance provided for any building or engineering contractor.
(4) If it appears to the Minister to be expedient to add to the classes of undertaking specified in subsection (2), the Minister may by order published in the Gazette direct that that subsection shall have effect with the addition of such one or more classes of undertaking as may be specified in the order.
The bank shall ensure that its business is conducted in the manner best suited for the efficient and economical utilization of its funds, and best calculated to achieve the purpose for which it is established.
6. Power of the bank to act as agent
(1) The bank may act as agent for the administration of funds (not being funds of the bank referred to in Part III) on behalf of such persons, organizations or administrations as may from time to time be approved by the Minister.
(2) Any funds administered by the bank in accordance with the provisions of subsection (1) shall not be deemed to be part of the funds of the bank referred to in Part III but they shall be administered, paid and applied in accordance with directions from time to time given by the Minister or such persons, organizations or administrations, as the case may be.
7. Additional powers and duties of the bank
(1) In addition to any other powers and duties conferred by this Act, the bank may-
(a) accept money, documents or valuables from any person for safe custody;
(b) in connection with any loan or guarantee given by the bank, manage, operate or control any property, enterprise or undertaking on behalf of any person;
(c) operate any savings scheme or any combined life assurance and savings scheme approved by the board; and
(d) make or give guarantee approved by the board on behalf of any person.
(2) The bank may do anything necessary, incidental or subsidiary to the exercise of the powers mentioned in subsection (1) including the charging of fees.
8. Powers of Minister and annual report
(1) The Minister may, after consultation with the board, give to the bank directions of a general character as to the policy to be followed in the exercise and performance of its functions in relation to matters appearing to him to concern the public interest, and the bank shall give effect to any such directions.
(2) The bank shall not later than six months from the end of each financial year submit to the Minister a report containing-
(a) an account of its transactions throughout the preceding financial year in such detail as the Minister may direct;
(b) a statement of the accounts of the bank audited in accordance with the provisions of section 19;
(c) a statement of every direction given by the Minister under this section and under section 17 and paragraph 3 of the Second Schedule during the preceding financial year; and
(d) a statement of all bad debts written off in terms of section 19(3) during the preceding year, and the reason in each case why the debt is deemed irrecoverable.
(3) The Minister shall cause a copy of the report together with a copy of the auditor's report to be laid before the National Assembly and the bank shall publish the same in such manner as the Minister shall specify.
