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BSE to collaborate with Zimbabwe Stock Exchange

Botswana Stock Exchange (BSE), one of Africa’s fastest growing securities markets, will join hands with Zimbabwe Stock Exchange (ZSE), one of Africa’s oldest bourses, a joint statement the two financial markets reveals.

The Thapelo Tsheole led bourse announced in a statement that they will sign a Memorandum of Understanding (MOU) as a basis for co-operation to help foster the prosperity of the two financial markets. “This will be to promote cross border investments, cross border listings and explore further opportunities for co-operation between institutions” reads the statement. The MOU will be signed by the CEO of Botswana Stock Exchange, Thapelo Tsheole and the CEO of the Zimbabwe Stock Exchange, Justin Bgoni in Harare, Zimbabwe on the 16th of September, 2019.

The statement further explains that a joint strategy has been unveiled between the two partners to provide the Exchanges with a framework for cooperation in areas of; product and market development, promotion of cross listings, which shall include the Exchanges formulating common fast track listing requirements for companies seeking secondary listing in either market, as well as a revenue sharing agreement on initial listing and continuing obligation fees paid by issuers.

Both exchanges will work on the creation of a framework, in conjunction with the respective regulators that will make it easier, quicker and cheaper for companies to cross list, by simplifying issues such as exchange controls, fungibility and regulatory harmonization. Another area of focus will be information sharing on key areas in developing capital markets.

Botswana Stock Exchange Chief Executive Officer Thapelo Tsheole, says the partnership between the two institutions will go a long way into contributing towards development of the SADC regional capital market and by extension Sub Saharan Africa. “We are happy to partner with the Zimbabwe Stock Exchange as an extension to our mandate and contribute not only to the development of the capital markets, but the region as a whole.” he said. Tsheole added that the collaboration will promote the values that BSE stands for as members of the SADC Committee of Stock Exchanges, as well as the African Securities Exchanges Association (ASEA).

For his part, the Tsheole’s counterpart Chief Executive Officer, Zimbabwean Stock Exchange Justin Bgoni, said it was a great milestone for the two financial markets to collaborate. ‘We are excited about the new partnership with Botswana Stock Exchange and the prospect of a gateway for our companies to raise hard currency on the exchange. This partnership will foster the development of the capital markets and contribute immensely to the economic development of Zimbabwe and SADC. For us, it is a practical step towards the upliftment of our two economies.’

The Zimbabwe Stock Exchange or ZSE, is the official stock exchange of Zimbabwe. Its history dates back to 1896[2], but has only been open to foreign investment since 1993. The exchange has about a dozen members, and currently lists 63 equities. There are two primary indices; the ZSE All Share and the ZSE Top 10. The Botswana Stock Exchange was established in 1989 as Botswana share market and became the Botswana Stock Exchange in 1994 by an act of parliament as a statutory parastatal under the Ministry of Finance. 

BSE demutualized to become a company incorporated under and in terms of the Botswana companies act in August 2018, subsequently changing to Botswana Stock Exchange Limited (BSE Ltd) and divorcing  the statutory entity tag to take in full swing the profit making company status generating return on investment for its shareholders. As of 2nd August 2018, the stock market now operates in the ownership setup similar to that of major exchanges such as JSE & Nairobi Stock Exchange. Botswana Stock Exchange is now a registered company under the Companies & Intellectual Property Authority (CIPA) Botswana.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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