15 Feb 2015

Nata-Gweta MP, Mr Polson Majaga, has asked the Ministry of Finance and Development Planning (MFDP) to enhance public education on the stock market to enable more Batswana to invest in it. 

Debating the MFDP budget estimates for the 2015/16 financial year, Mr Majaga expressed concern that a handful of ordinary people in Botswana knew about how the stock market operated. “Many people do not understand how the Botswana Stock Exchange operates, therefore education is needed,” said the MP.

Mr Majaga said teaching more people about the stock exchange will encourage them to take advantage of opportunities offered by the stock market. Making his ministry’s budget submission for the 2015/16 financial year on Wednesday, MFDP minister Mr Kenneth Matambo told Parliament that Botswana Stock Exchange (BSE) continues to perform well.

Mr Matambo said even though turn-over slowed down from P2.3 billion in 2013 to P2.17 billion in 2014, it was still the second highest since the BSE inception.He said BSE intends to capitalise on the existing infrastructure such as the Automated Trading Shares (ATS) and Central Securities Depository (CSD) to centralise the trading, clearing and settlement of government bonds at BSE.

“Such initiative is part of the efforts to improve transparency, fairness, reach, liquidity and in the process promote efficiencies in the bond market. 

This will be considered under the National Payment Strategy,” said the minster. He assured MPs that the BSE has continued with its public education to raise awareness about investment opportunities on the BSE, thus improve retail investor participation in the stock market. He said in October 2014 the BSE launched an investor handbook that is primarily targeted at retail investors and is aimed at promoting literacy about the stock market.

Mmathethe-Molapowabojang MP, Dr Alfred Madigele, said he was concerned by rumours that some high profile companies want to de-list from the BSE. He said this should be a source of concern for the MFDP because their de-listing would weaken the stature of BSE. Though the minister said he has heard those rumours, he said one company only was considering de-listing. He told Parliament that there are more companies that are considering joining BSE.

Good Hope-Mabule legislator, Mr James Mathokgwane accused government of failing the country by not running the economy prudently. He said there is a lot of corruption in government public enterprises, giving the example of Statistics Botswana where he claimed there is nepotism. He said he has evidence that some individuals were employed fraudulently at Statistics Botswana . 

He also said handling of public tenders is not being done properly at the Public Procurement and Asserts Disposal Board (PPADB).  He said this has resulted in government losing a lot of money through litigations after some unhappy companies took government to courts of law.

In his debate of the MFDP budget, Kanye North MP, Mr Patrick Ralotsia thanked the minister for having outlined good plans aimed at strengthening the private sector. He said strengthening the private sector will enable it to grow and produce more job opportunities for unemployed Batswana. 

Mochudi East MP, Mr Isaac Davids asked for Value Added Tax to be removed from commodities such as water. e said VAT makes it too expensive for farmers who want to drill boreholes for watering livestock and crops. 

He also criticised the government poverty eradication programmes, saying they have failed to serve their purpose. He said the backyard gardens project should be discontinued because it is just a waste of government funds. ENDS