BSE concludes corporate governance & refresher workshop

The Botswana Stock Exchange recently concluded its annual listing requirements workshop, where facilitators provided insights into what issuers need to know when listing their securities for the first time. Tsametse Mmolai, Head of Listings and Trading at the Botswana Stock Exchange, outlined the main requirements discussed during the workshop. One key area of focus was the consideration of lowering the public free float requirement from 30% to 10% to stimulate more listings due to a current scarcity. While this adjustment has not been implemented yet, it was a topic of discussion to engage market participants. Another notable change involved extending the locking periods to three years for the venture capital board to enhance market confidence. Additionally, the exchange plans to publish sanctions against issuers to reinforce market rules and boost investor trust and confidence. The workshop also emphasized the importance of trust, transparency, and governance in attracting investors to the exchange. Mmolai stressed the necessity of aligning rules with international standards to establish credibility and foster investor confidence. By maintaining up-to-date rules, the Botswana Stock Exchange aims to position itself as a trusted market for investors to allocate their capital effectively. Educating market participants about the significance of adhering to regulations plays a vital role in dispelling misconceptions and promoting a conducive investment environment. To attract more investors and listings, the exchange has been actively involved in educational initiatives both for potential issuers and retail investors. Programs such as the CPD entrepreneurship program target SMEs to encourage corporatization and readiness for investor funding. By engaging with entrepreneurs and investors at grassroots levels through workshops and outreach activities, the exchange aims to broaden its investor base and enhance market participation. In terms of the type of companies being targeted for listings, the exchange is open to all sectors but places a strong emphasis on SMEs given their significant contribution to employment in Africa. Recognizing the funding gap for SMEs, the exchange seeks to address educational barriers hindering these companies from accessing capital markets. However, the exchange also acknowledges the demand for blue-chip companies as investors in the region often favor established firms, presenting a dual challenge that requires strategic solutions. Regarding partnerships, the Botswana Stock Exchange is keen on collaborating with other exchanges to expand market access and facilitate cross-border investments. Drawing inspiration from initiatives like the Johannesburg Stock Exchange's partnership with the New York Stock Exchange, the Botswana Stock Exchange is exploring partnership models with regional exchanges to enhance market connectivity and investor participation. The exchange's involvement in projects like the African Exchanges Linkage Project (Aleb) underscores its commitment to creating synergies among African stock exchanges to foster greater market integration and accessibility for investors. Overall, the Botswana Stock Exchange's focus on governance, transparency, and investor education reflects its proactive approach to enhancing market dynamics and attracting diverse listings. By enacting regulatory changes, engaging with market participants, and exploring partnership opportunities, the exchange aims to position itself as a leading platform for both issuers and investors seeking growth opportunities in the African market.