BSE nurtures SMES
Pauline Dikuelo | Monday September 9, 2019 11:12
The programme was introduced early this year as a way of grooming companies that could potentially raise capital, improve governance and leverage from increased publicity through the stock market in the short to medium term.
The graduated companies include; AT&T Monnakgotla, First Capital Bank, Homec, Ticano group, Earth Vitamins, Destiny Car Rentals, Urban Soul Apparel, Cally Clothing, Glam Collections, Bo-Inter trading, Energy X Petroleum, Creative Business Solutions, Kelyh Mass, Sareg Building and Civil Construction, Ultimate Hydro Solution, STOL Petroleum and Zila Investments.
Through Tshipidi the local bourse seeks to provide practical training through a comprehensive and interactive programme that covers key themes necessary to prepare and position a company to list on the BSE.
Speaking at the graduation ceremony last week, BSE CEO Thapelo Tsheole said the companies went through practical training offered by industry experts, advisors in the listings ecosystem with regards to key elements of corporatisation, capital structure, financial reporting, commercial law, listing requirements and corporate governance.
“The programme was facilitated over a four-month period. During those months, the BSE held two days’ engagement every month beginning June, with the last session having taken place in August,” he said.
According to Tsheole, the programme is expected to prepare local SMEs to transition into corporates that can grow beyond the borders of Botswana.
In addition, he said the BSE has designed the programme in such a way that it stimulates academic learning that is deemed appropriate to business prosperity. “This is augmented by practicals through inductions and orientations as well as the preparation of disclosure documents,” said Tsheole.
“The success of this programme is based on the collective efforts of the listings ecosystem and it is designed to be as cost effective as possible in order to not deter potential applicants.”
For an SME to qualify for the programme it must be registered in its country of incorporation and the founder and CEO or CFO must attend all modules. The second batch will be rolled out next year. Upon graduation, companies are exposed to improved governance structures and better knowledge of articulating their business strategy as well as increased visibility to the public through BSE marketing platforms.
The programme also exposes SMEs to practical insights, knowledge and feedback from institutional investors about what they look for, and how the company should look like, for them to invest in initial public offerings.
They get increased awareness of the BSE listing requirements by potential issuers as well as applied knowledge of the same.
This creates an opportunity for SMEs to work with an intimate network of advisors and have progressive access to advisors and CEOs of listed companies.