ASEA’s Thapelo Tsheole on how to unlock Pan-African investment flows

In a recent interview with CNBC Africa, Thapelo Tsheole, the CEO of the Botswana Stock Exchange and Deputy President of the African Securities Exchange Association (ASEA), shed light on the critical factors influencing investment decision-making in African markets. A survey of 50 African asset managers highlighted the importance of governance, good regulation, and the availability of market data in driving investment flows into the continent. Tsheole emphasized the essential role of optimally functioning African capital markets in facilitating these investment flows. Tsheole discussed the initiatives undertaken by the ASEA to address the identified challenges and enhance market efficiency. One of the key strategies employed by the association is the Africa Linkages project, aimed at harmonizing and interconnecting African stock markets. The project, initially involving eight stock exchanges and set to expand further, seeks to improve liquidity and attract investment both within Africa and from other parts of the world. The interview touched upon the significance of enhancing liquidity and increasing the number of companies listing on African stock exchanges. Tsheole highlighted the potential impact of the Africa Linkages project in addressing these challenges by providing a platform for issuers to access a broader investor base and for investors to easily access African stocks. Looking ahead, Tsheole shared insights on the market performance of the Botswana Stock Exchange amidst the challenges posed by the COVID-19 pandemic. While acknowledging the impact on trading volumes and market indices, Tsheole expressed optimism for 2021. The listing pipeline for the Botswana market appears promising, with several medium-sized and large corporations expected to list in the coming year. In terms of targets for 2021, Tsheole indicated a minimum expectation of four equity listings, alongside other listed funds and debt instruments. The market outlook for 2021 reflects a positive trajectory, fueled by the efforts to attract diverse listings and enhance market offerings. Overall, Tsheole's insights underscored the ongoing efforts to drive Pan-African investment flows through collaborative initiatives, strategic market development strategies, and a focus on enhancing the regulatory framework and market infrastructure. As African capital markets evolve, the potential for increased investment flows and market participation brightens, laying a foundation for sustainable growth and development across the continent.