Botswana Stock Exchange CEO lures investors to Botswana
Botswana Stock Exchange CEO, Thapelo Tsheole has urged investors to consider setting up in Botswana, because of the country’s stable economy, predictable currency, robust pension industry, in addition to a credible capital market
Tsheole, who is respected by peers, even at a global stage, was speaking on Thursday at the ongoing U.S - Africa business forum, under the theme ‘Invest in Botswana’. The BSE, which has grown tremendously in the past few years, is a reputable institution, as it is accredited and associated with major international bodies such as the World Exchanges Federation (WEF), United Kingdom’s Revenue and Customs Office, the Africa Stock Exchange Association among others.
“We (BSE) operate in the same league as any other major stock exchange,” he told the meeting which was also attended by the Minister of Trade and Industry, Mmusi Kgafela. He assured investors that, once they have invested their funds in the country, they will also be at liberty to repatriate their profit at any time. “In Botswana, we don’t have foreign exchange controls,” said Tsheole who is President of ASEA. Investors should also not think twice before coming to invest funds in the country, mainly because of Pula (Botswana’s currency) - which is stable and predictable unlike other currencies.
“In addition, we have enough US dollar reserves,” he assured investors. According to Africanmarkets.com, the Pula is more stable relative to the mighty US dollar, which is a plus to international investors who seek to invest here.
Tsheole, a holder of MBA from the University of Cape Town, Africa’s uppermost university, further encouraged investors to consider floating their shares in the BSE.
“Most of the IPOs (Initial Public Offers), which have gone through the stock exchange has been over-subscribed. This is a clear sign of confidence in the market,” he stated. “So bring your money and companies here.”
Botswana is also ranked highly in terms of its financial competitive, compared to peers. The other fact, which will act as an advantage for investors, is that Botswana’s pension fund managers are awash with funds. “We currently exports 70 % of our funds. This means, companies can come and raise funds here, then expand regionally,”
Botswana pension funds sits at $12 billion. The BSE has announced plans to unlock more opportunities in the capital market, which will also benefit investors. Such plans include self-listing (in 2024). Government plans to privatise some of its agencies and this is exciting to the market.
Meanwhile, luring investors to Botswana in the same forum, Matthews Bagopi, the Chief Technical Officer at MDC Botswana said economic and political stability prevail in the country, and this is good for mining investments. MBC Botswana, which looks at government interests in the mining sector, works hard, to set a benchmark which will ensure the country acts a perfect destination for minerals. Investors can invest in the highly lucrative copper belt, where companies such as Khoemacau Copper Mining and Sandfire Resources are churning out copper.
In the Eastern part, more minerals such as iron ore, copper, cobalt, are in abundance, said Bagopi. Policy wise, Botswana is ranked highly in Africa. This year, a Canadian research entity, Fraser Institute ranked Botswana as the most attractive country for investment in mining in Africa. In a new survey, the entity assessed mineral endowments and mining related policies for 62 mining jurisdictions, including Botswana.
The entity noted that in addition to mineral potential for mining jurisdictions, policy factors examined during the survey include uncertainty concerning the administration of current regulations, environmental regulations, regulatory duplication, the legal system & taxation regime, uncertainty concerning protected areas, disputed land claims, among others.
Botswana Investment and Trade Centre, CEO, Keletsositse Olebile expressed his gratitude to all participants. He reaffirmed Botswana's commitment to facilitating investment and trade partnerships. He emphasized the government's dedication to providing support and resources to investors, ensuring a seamless business experience in Botswana.