BSE eager for Batswana to buy shares
Isaac Pinielo | Monday October 20, 2014 16:14
The 50-page book also explains the benefits of investing on the stock exchange, the different types of investments that investors can make on the BSE and how to monitor the share price movement.
Speaking at the launch of the book last week, BSE main committee chairperson, Regina Sikalesele-Vaka said the handbook is a valuable tool for educating ordinary citizens to create their own wealth and financial independence through the stock exchange.
She stated that a stock exchange is a key strategic driver of any economy because it, among other things, facilitates Foreign Direct Investment (FDI), adding that in the case of Botswana, it is critical for the Economic Diversification Drive (EDD).
“It is the vehicle through which companies can issue securities to raise capital and investors – individual as well as organisations – can invest or trade in those securities to create wealth for themselves and ultimately to stimulate the economy,” said Sikalesele-Vaka.
The handbook also contains basic facts and principles of investing including the BSE products, keeping track of investments as well as a glossary of common financial terms.
The chairperson further noted that through the stock exchange, the investor is afforded an opportunity to invest money in various entities without the risk of running the company.
According to Sikalesele-Vaka, this investment process provides an opportunity for the investor’s money to work for them, while they get on with other things, instead of the conventional way of life where one works for their money.
In the context of Botswana, she added, the ordinary citizen is sufficiently exposed to limited types of investments such as banking or insurance and finds other forms of investment intimidating or daunting primarily because they do not know enough about them or about the process of participating in those investments.
“It is precisely for that reason that the Botswana Stock Exchange took a strategic decision to provide fundamental financial education to the Botswana market,” she said.
Sikalesele-Vaka noted that the retail or individual investor base has grown significantly from almost nothing in 2007 when the initiatives commenced to 8.7 percent in 2013.
In the same year, the participation of local individuals on the BSE more than doubled to P201.7million, an increase of 111.4 percent in comparison to the year 2012.
She said such development is encouraging and that it indicates that Batswana are becoming more comfortable with investments other than traditional banking and/or insurance.