08 May 2022

The recently launched Botswana Stock Exchange Investor Compensation Fund is a key component in transforming the local stock market into a world class securities exchange.

The Botswana Stock Exchange Board chairperson, Lieutenant General Tebogo Masire said this during (BSE) bell ringing ceremony recently.

“The robustness and attractiveness of any stock exchange is hinged on its capabilities to innovate and adopt international best practices to remain competitive in this global, fast-paced environment,” said Lt Gen. Masire.

He highlighted that the fund was set to revolutionise the local market as BSE joined an elite number of securities exchanges that had adopted the practice in promoting investor protection.

Lt Gen Masire said in ensuring the growth of the stock market, the BSE had since inception undergone a number of transformational phases through which it evolved from being one of the smallest exchanges on the continent in terms of market cap, to being one of the most efficient amongst emerging markets in the world.

He attributed this phenomenal change to a number of factors, but mainly, the foundation laid through the significant support from government and relevant stakeholders during BSE’s 33 years in existence.

“From our diverse issuer and investor base to our state of the art technological advancements in the form of the Automated Trading System and CSD System, we have made important strides to position the BSE as a key player in the global financial markets space,” he said.

Non-Bank Financial Institutions Regulatory Authority (NBFIRA) chief executive officer, Mr Oduetse Motshidi extended gratitude to the Ministry of Finance in driving the transformation of BSE.

“As a whole the ministry has played a pivotal role in the growth of our local capital market since it was established in 1989. During that period, there were significant changes that had enabled the BSE to be a competitive player in the global capital markets scene,” he said.

Those, he noted, included the demutualisation of the BSE in 2018, the funding of the Central Securities Depository System in 2008 and the Automated Trading System in 2012, which had positioned the BSE at par with regional counterparts.

In that regard, Mr Motshidisi applauded the ministry leadership for their continued guidance towards transforming the BSE into a world class securities exchange.

Regarding market performance, the BSE has traded P442.1 million which translates into an average daily turnover of P5.8 million.

During this period, the number of shares traded equate to 188.7 million shares, while the equities market is valued at P38.8 million, representing 23 domestic listed companies and seven foreign listed companies.

With respect to debt security, the value traded for government bonds from January 5 to April 22 stood at P444.5 million while corporate bonds for the same period stood at P50 million. This means that the total value traded of bonds stood at P494.5 million. There are currently seven government bonds and 36 corporate bonds. ends