Mmegi

Bond market activity jumps

Guiding the market: BSE acting CEO, Kopano Bolokwe. The BSE is the primary platform for the bond market and has introduced several initiatives to boost both listings and secondary market activities
Guiding the market: BSE acting CEO, Kopano Bolokwe. The BSE is the primary platform for the bond market and has introduced several initiatives to boost both listings and secondary market activities

Activity in the traditionally quiet secondary bond market has ballooned this year, with the Botswana Stock Exchange noting a 66.7% increase in trades to P5 billion in the year to October 31, compared to the same period last year.

Bonds are financial instruments issued by government and corporates to borrow money from the market. Secondary market trades involve sales of bonds by those who bought the bonds at their original floating by issuers such as governments and corporates.

In a recent update covering the period between January and October 31, the BSE noted that the majority of bond market trades were associated with government bonds, which generated P4.9 billion in trades, with the balance involving corporate bonds. The sole sustainable bond on the BSE, listed by Absa Bank Botswana last year, recorded trades worth P4.5 million over the reporting period.


Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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