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Botswana Stock Exchange expects more listings to boost performance, says CEO
The Botswana Stock Exchange has been looking at ways to attract more listings in order to boost liquidity. BSE CEO, Thapelo Tsheole joins CNBC Africa for more.
Mon, 21 Jun 2021 12:05:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The BSE anticipates new listings in various sectors including fixed income, IT, telecommunications, and financial services to enhance market depth and attract investors.
- Efforts are being made to address delisting concerns through stakeholder engagement and supportive measures to retain listed entities on the exchange.
- Incentives, both natural and potential government-backed, are being considered to attract companies and facilitate capital raising on the exchange amidst economic uncertainties.
The Botswana Stock Exchange (BSE) is set to experience a boost in liquidity and performance with the anticipation of new listings, according to BSE CEO, Thapelo Tsheole. In a recent interview with CNBC Africa, Tsheole revealed that the exchange has already received two listing applications this year, with one approved and another at its final stages. The approved listing is from a triple A rated institution, while the pending one is an exchange-traded fund (ETF) that will be listed on the market. Tsheole indicated that two more listings, possibly an equity and an ETF, are expected by the end of the year, along with potential bond market applications. The CEO highlighted that last year's target of four listings fell short due to external factors such as acquisitions and COVID-19 impacts but emphasized ongoing efforts to engage with listed companies to address their concerns and retain them on the exchange.
Sector-wise, the upcoming listings are expected to cover a range of industries including fixed income, IT, telecommunications, and financial services. The BSE is actively working to diversify its listing offerings and attract companies across various sectors to enhance market depth and investor interest. In light of recent delistings, Tsheole acknowledged that some companies had exited due to acquisitions and strategic reasons rather than stock exchange-related issues. The exchange is focused on stakeholder engagement and continuous dialogue with listed entities to understand their needs and provide necessary support to maintain listings on the BSE.
In terms of incentives to attract companies, the BSE is exploring opportunities to collaborate with the government to offer incentives for listed entities. While natural incentives such as access to capital and liquidity exist within the market, additional support from the government could further incentivize companies to list on the exchange. Tsheole emphasized the importance of maintaining a robust capital market, especially in times of economic uncertainty like the COVID-19 pandemic, where companies require capital infusion to navigate challenges and sustain operations.
Looking ahead, the BSE aims to position itself as a preferred investment destination by inviting regional and international companies, particularly in the mining sector, to list on the exchange. Tsheole highlighted the success of multinational and local mining companies listing on the BSE and expressed openness to welcoming more foreign businesses seeking to raise capital in Botswana. The exchange's internationalization strategy aims to attract a diverse range of companies to leverage the market's stability and investment opportunities.
As the BSE prepares for new listings and potential market growth, stakeholders remain optimistic about the exchange's prospects for improved performance and increased investor participation. With a focus on enhancing liquidity, expanding listing offerings, and fostering a supportive environment for listed entities, the BSE is poised for positive momentum in the coming months.
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