Africa Stock Exchange Botswana
Welcome to Africa Stock Exchange Botswana Boardroom Meeting-
Hi everybody, this is Yusuf Azizullah from GBAC and this month we are bringing Thapelo Tsheole, the stock exchange CEO of Botswana Stock Exchange (BSE).
Welcome Thapelo for joining us welcome could you tell us, Botswana is a landlocked country next to South Africa Namibia, how has COVID been treating you as a country and talk about the Stock Exchange?
Yeah I think as a country the effects of it are actually being felt across the the economy and also I just across the people we have been on several lockdowns and we’ve been in a state of emergency likely to enforce the control of COVID and therefore there have been restrictions in terms of movement of people and movement of generally the people across the country and this impact businesses and when the impact is failed in businesses, it was ultimately failed in the stock market and that’s what we are seeing now when we have seen the index have going down at (-8%) since the start of Covid last year the trading levels were very thin like 60% down mainly because you know COVID hit people who want to be very cautious in terms of the only one to sell or buy at the right prices but now as the things are coming out across the planet vaccines are being implemented and so forth how do you see the recovery in Botswana and what is the stock exchange doing specifically for the listed members yeah I think the recovery in terms of the GDP the economy is expected to grow this year to about 7% seven percent I think that is actually used to everyone in the economy and also in terms of the story change, we have been able to impact knowledge to our listed entities to give a proper platform for them to raise capital in the case they need to keep it especially at this time when there’s a great need for cash and therefore we have had a lot of activity in the primary market.
Great, there’s something Botswana did that is very Innovative during COVID and I want to highlight my viewers about it it’s basically the ERGI basically stands for Ethical practices in Supply Chains which was signed with Australia Canada, USA Peru and Botswana which is a leader and you’re creating a Framework for Supply Chains how is that going to be promoting more Sustainability in the country and bringing more Capital if you can comment something about that that would be really good for my viewers to understand how is that helping you guys?
Yeah I think the good thing is that I mean every trade agreement that is signed to enhance economic change between countries it’s very helpful especially for a country like Botswana which is small and landlocked so this is able to really Sustain the growth of the economy by having more partners in terms of exchange of goods and services I think ultimately it is an added plus to the economy and therefore I think it is the right step, in the right direction is a positive move great outstanding
I also wanted to highlight your Stock Exchange it is a Sustainable Stock Exchange could you tell me what does that mean and how is that helping the investors yeah
BSE is a sustainable store exchange we joined this United Nations initiatives and this also actually is a group of stock changes that they have committed themselves to carry out Sustainability issues (Environmental Social & Governance ESG) and initiatives and also to actually holding some ESG seminars and workshops and putting in place some activities that encourage sustainability in the companies that are listed in the exchange and we have done that a lot we profile sustainable companies we also carry out initiatives that encourage sustainability and thereby we are able to attract a lot of investors say in the sustainability space outstanding what is the largest listed company there what is the the biggest investment that people are attracted to tell us a bit about your offerings at the stock exchange yeah we have companies across the various industries the financial services company especially the big insurance and banking yes sectors we also have the security sector company listed in the security sector but we also have the FNBB (First National Bank of Botswana), consumer goods and it’s also a very considerable a big sector agriculture we have a company that deals with the production of seeds and in the architectural space I think it’s also a very good mix and therefore we have got companies across multiple sectors and this gives adversity in terms of investments that are available and for investors.
Fantastic, where do you want to take the exchange what is the plan for the next 5-10 years?
Yeah I think they may need to make the international exchange as an investment a place for foreign investors and also for locals to encourage a lot of citizens to take place we’ve been able to increase citizen participation in the stock market about 500 percent in the last four years and also to create a platform where companies that are operating in the economy can actually come and raise Capital and also deploy this Capital somewhere for the productive activities and we’ve been able to successfully do that because almost 60 percent of our companies raise capital in input zone and they also expand with this capital to the rest of Africa and therefore making Botswana our journal still change as a platform for raising capital to expand to into the continent and we want to continue to provide this platform to a number of companies especially also medium and small-sized companies that want to utilize the stock chain for that growth especially that the economy is actually dominated by the medium-sized companies.
Fantastic this is really good anything else you want my viewers to know you know I’m in more than 106 countries I have Global 500 Chairs and now DOW 30 Chairs and CEOs they’re always looking for new opportunities to anything you would like to add I would love to learn?
Yeah you know is a good investment destination in terms of the fact that it is very stable politically it’s a stable economy uh they’ve got a fully convertible currency, we can actually freely capital in and out at any particular point in time so there are no exchange controls and therefore it presents itself as a strong investment destination so also it’s an economy that is fast growing I think we on average we grow at a minimum of about 3.5 percent and therefore I think the policies and laws in the country are very conducive for investments both in terms of people coming into the market and also for companies to do in business here.
Fantastic thank you, Thapelo Tsheole for taking the time to tell us a little about your exchange and about your country appreciate you coming and joining us thank you for taking the time to visit us thank you!
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