BSEL's Tshipidi Board To Nurture SMMEs
Kaone Maje | Monday January 14, 2019 12:37
The Board is the second of its kind after Serala OTC, which registers businesses not ready to list their equities on the stock market.
BSEL chief executive officer (CEO), Thapelo Tsheole revealed during the first opening bell ceremony of 2019 that the stock exchange will have a second Board dubbed Tshipidi Board.
This is one of the initiatives that the stock exchange enacted to advance their footprint in the country and to include a variety of businesses regardless of their size. Tshipidi Board will also offer small businesses an opportunity to accumulate funds to grow their businesses so they can be ready to list on the main board.
“Of significant importance for this year is the introduction of the new Board, Tshipidi Board meaning that small businesses will be accepted to list on the stock market. This happens in other markets, especially emerging markets outside Africa. This still needs groundwork and that is what we are still working on,” said Tsheole.
“We intend to set up a mentorship programme for SMMEs companies that want in the long term to join the stock exchange. The programme will sort of set up a membership program, make them go through courses so that we are able to build up companies slowly,” he revealed.
The CEO also revealed that the stock exchange is preparing to replace the shares settlement system with the CSD system that allows borrowing of shares between investors, online investor access, IPO processing function and Annual General Meeting feature that allows for online voting.
BSEL is also planning to instal two data screens or squares that will display the every stock market detail. The intended places for the installations of the data squares are in the BSEL premises and the Central Business District area.
Tsheole also said the bourse would host the African Security Exchange Conference set to be held in Kasane this year.
“This is the largest financial market conference in the whole continent which will gather about 700 international delegates,” Tsheole told the congregated members of the public.
According to the CEO, BSEL’s total market size for the year 2018 is recorded at P430 billion while 2018 total equity trading was P1. 86 billion, which is a relatively good number considering the fact that 2018 was the toughest year for emerging markets. The top five traded companies were Sechaba Breweries Holdings Limited (P481. 6 million), Letshego Holdings Limited (P425. 9 million), New African Properties (P298, 4 million), CA Sales (P195. 3 million) and First National Bank Botswana (P80. 9 million).
For the year 2018, foreign companies trades increased to 40.6% of the total turnover, compared to 34,4% of the total turnover. Foreign individuals remained flat at 1.3 percent of the total turnover.
The activity of single individuals (Batswana) was registered at P100 million worth compared to P1. 86 billion of foreign individuals. Local companies dominated the market by 53.2%.