08 Feb 2017

Assistant Minister of Basic Education Mr Moiseraele Goya has implored Batswana to invest in financial instruments.

Speaking during Botswana Stock Exchange (BSE) Open Day in Palapye on Monday, Mr Goya said Batswana were more comfortable with traditional forms of investments such as property and livestock.

He said with the stock market still perceived as a foreign wealth creation avenue, many shied away from investing in BSE listed securities such as shares, bonds and exchange traded funds due to lack of understanding.

“I am not implying that Batswana should not invest in property and livestock, rather they should put their eggs in numerous baskets including investing in BSE products,” he said.

Mr Goya who is also MP for Palapye said the BSE was a platform where entrepreneurs and businesses regardless of size, could raise capital to grow their operations.

He said the open day would assist business owners with the ambition to grow, adding that the BSE played an integral role in driving the growth and diversifying the economy.

He commended the BSE for bringing the open day to Palapye, adding “this initiative has brought the exchange closer to the people, proving that the BSE accommodates all types of investors including the ordinary Motswana.”

For his part, BSE chief executive officer Mr Thapelo Tsheole implored Batswana to build their own wealth through investing in shares.

He said many feared investing in shares because of the risks associated, noting that it was the nature of the business for shares to go up and down depending on the performance of the market.

Mr Tsheole said investing in shares was not for the rich, rather an individual could start small and increase with time.

He explained that owning a share meant one legally owned a portion of a company and had certain rights, adding that it also meant that one was entitled to dividends if declared by the company and electing directors of the company among others.

The BSE, he said had qualified and experienced brokers offering professional advise on investment.

He said the BSE initially had five listed entities with a single broking firm but now boasted 34 listed entities.

The deputy district commissioner for Palapye Mr Ernest Phiri commended BSE team for enhancing financial literacy and inclusion in the country.

He said the journey did not end at wealth creation and should protect the wealth created.

“As we accumulate assets, it is important to put in place measures to protect them from unexpected events,” he said.

He said insurance minimised the probability of having to sell investments to cover unexpected costs. ENDS