04 Apr 2019

Minister of Finance and Economic Development, Mr Kenneth Matambo, says Botswana Stock Exchange Limited (BSEL) serves as a barometer of economic health in Botswana.

Mr Matambo was speaking at the BSEL April Bell ceremony on April 2.

He said development of a domestic capital, in particular the securities market, was not incidental but rather a result of deliberate effort by government in recognition of the importance of the stock exchange in mobilisation of finance for development.

Mr Matambo stated that a well-run stock market gave the right signals to the international market for inward investment.

He noted that it was pleasing to witness the strides made by BSEL in Botswana’s economy, of being an avenue for companies to raise capital for development.

He further said BSEL had contributed positively to the economic development by providing a platform for savings to be channeled to investments in the country.

Mr Matambo commended BSEL for its continued outreach programme to educate Batswana on the benefits of investing in shares through the stock exchange as part of growing their wealth and diversifying their investment portfolio.

Mr Matambo indicated that the evolution of the development of the BSEL dated back to the study by the International Monetary Fund in 1989 entitled “Botswana: Financial Policies for Diversified Growth.”

He mentioned that among the recommendations of the study was an establishment of the securities market.

He said since the adoption of the recommendations the government had been taking positive steps to promote the development of capital markets and in particular securities market.

To this end, Mr Matambo said there had been several legislature pieces aimed at facilitating the growth of the BSEL; Botswana Stock Exchange Act 56:08 of 1994, Collective Investment Undertaking Act 56:09 of 2001, Securities Act 2014, and the Botswana Stock Exchange Transition Act 2015.

He explained that the Botswana Stock Exchange Transition Act 2015 provided for the demutualisation of the BSE, positioned the exchange to efficiently play its promotional role in encouraging public offerings.

BSEL chairperson, Lt Gen. Tebogo Masire, said the organisation had come a long way from operating as an informal market in 1989 as Botswana Share Market (BSM).

He said during that period, BSM was a modest market with only five equity listings and one brokerage firm.

However, Lt Gen. Masire said Botswana’s economy had led to more companies and more stock brokers coming to the market and leading to formalisation of the market through Botswana Stock Exchange Act of 1994.

Meanwhile, chief executive officer of BSEL Mr Thapelo Tsheole said BSEL planned to revamp with developments such as new CSD system, new website and app, data display screen which he said will be at CBD.

Other development would include the mentorship program, security borrowing and lending.

He also noted that BSEL would host the 23rd Annual African Securities Exchanges Association (ASEA) General meeting and conference to be held in Kasane later this year. ENDS