| Ability to raise to capital | Listing give a companies the opportunity to raise funds from a large pool of diverse investors for ongoing business expansion. |
| Owner equity release | Founders of a company can disinvest or “cash-in” by selling a portion of their shareholding in the business. |
| Enhanced corporate governance practices | Listed companies have to adhere to listings requirements on a continuing basis and these include high standards of corporate governance, disclosure of information to investors and regulators, provision of audited financial statements, etc. |
| Improved liquidity and marketability of securities | Listing eases, the buying and selling of securities in a public market, thus shareholders can liquidate their holdings with relative ease. |
| Enhanced credibility | By virtue of being a listed company, a company’s stakeholders such as banks, suppliers and other entities become more amicable to doing business due to good governance practices. |
| Increased public awareness | A listings leads to increased corporate profile and brand visibility. |
| Employee retention/attraction | Opportunity to create Employee Share Option Plans (ESOPs) that can help retain and attract high caliber employees. |
| Price revelation and price discovery | Trading of listed shares unlocks and reveals the true value of the share by promoting price discovery. As such, a listed company can determine its worth by referring to the market price of its share. |
| Technology and infrastructure | Trading of securities on the BSE is electronic and conducted through the Automated Trading System (ATS). The clearing and settlement of securities is done through the Central Securities Depository (CSD) system. |
| Investor base | There is access to a broad base of investors ranging from various institutional and retail investors, both local and international. |
| Large pool of capital | Botswana has a large pool of long term contractual savings especially by pension funds. |
| Internationalization | The BSE continually pursues strategies to align with international best practice in the global securities and exchange industry and adapt to the evolving and fast changing global investment environment. |
| International Affiliations |
The BSE is affiliated with the following international institutions:
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Benefits of Listing
There are significant advantages to listing on the BSE:
There are significant advantages to listing on the BSE:
No Exchange Rate Controls
Botswana does not have restrictions on the inflow and outflow of currency and this makes the country the ideal destination to raise capital and expand to the rest of the world.
Macro-Economic Fundamentals
Botswana has strong macroeconomic fundamentals that positively affect the economy at-large. Monetary policy in Botswana has an increasing focus on the goal of price stability and a framework for forecasting inflation, which has been stable overtime.
Political Environment
Botswana has a stable political environment with a multi-party democratic tradition that dates back to 1966 when the country first held its general elections. The last electoral cycle was held in 2019 making Dr. Mokgweetsi E.K Masisi the 5th president of the republic of Botswana.
Abundant Capital
Botswana enjoys an abundant capital from pension funds that seeks instruments to invest in. In 2019 total fund assets stood at P92 Billion with 60.5% of that invested offshore and 39.5% invested onshore, while 14.3% is invested in Botswana companies’ primary listed on the BSE. The allocation supports the notion that there a lot of capital chasing too few assets, which reinforces the advantage of raising capital through the BSE.
Efficiency at the BSE
The BSE has a young agile team that is experienced to work with prospective issuers from the time when companies are interested to list. The BSE is always available to make presentations to prospective issuers and observes the strict timelines in engaging with companies following the submission of an application.