22 Mar 2021

Parliament on Friday started debating a motion presented by Kgalagadi North MP, Ms Talitha Monnakgotla requesting government to promote listing in the Botswana Stock Exchange (BSE) by foreign and big companies.

Presenting the motion, Ms Monnakgotla said by enabling Batswana to purchase shares in listed companies the government would be promoting citizen economic empowerment.

She said in other countries companies were required to float a percentage of shares, 10 to 15 per cent, in the bourse for citizens.

MP Monnakgotla said with the absence of financial controls, all profits were repatriated hence failing to develop the country.

The MP said a number of telecommunications and mining companies operating in the country were not listed, hence depriving Batswana the right to partake in economic development.

Kanye North MP, Mr Thapelo Letsholo tried to amend the motion, but his request was denied as it was ruled to be against the standing orders.

MP Letsholo’s motion requested “government to consider minimum shares that must be floated by foreign companies that are operating in Botswana who are listed in other jurisdictions, thus promoting citizen economic empowerment.”

Minister of Finance and Economic Development, Dr Thapelo Matsheka welcomed the motion, saying it was in line with what the government was already doing.

He noted that the motion supported financial inclusion and capital market development as well as financial deepening.

Dr Matsheka said government would continue to work with BSE in encouraging companies to list.

He noted that BSE had hosted annual listing conferences, adding that 18 Small, Micro and Medium Enterprises (SMMEs) had listed in the local bourse. He also noted that there were personal visits to the BSE offices and that BSE also held monthly opening bells.

The finance minister noted that the investor accounts had increased from 40 000 to 95 000 due to efforts from the BSE.

Contributing to the debate, MP for Ramotswa, Mr Lefoko Moagi said it was a way of empowering citizens, adding that even employees would be encouraged to buy shares.

The MP for Good Hope-Mabule constituency, Mr Eric Molale said the motion called for a change in the narrative such that companies would no longer be told what the country could do for them, but that they also had to state what they could offer for the citizens.

Francistown South MP, Mr Wynter Mmolotsi said the motion offered nothing new as companies were already encouraged to list in the BSE.

He said instead Parliament should introduce foreign exchange controls to deal with repatriations.

MP for Okavango, Mr Kenny Kapinga said the motion worked against the tenets of a free market economy.

He said only the rich would benefit while the rest of the population would continue to dwell in poverty.

MP Kapinga also said it was a motion from capitalists, adding that Batswana would only benefit if their salaries were increased.

He said some countries introduced policies such as Black Economic Empowerment and Indigenous Policies but that they only benefited the few ruling elites.

MP Molebatsi Molebatsi supported the motion, but cautioned that it should not work against Botswana’s efforts of attracting foreign direct investment.

The motion is expected to be concluded next week. ends