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New fund to compensate shareholders of BSE listed companies

BSE

The Botswana Stock Exchange (BSE) is in the process of establishing a new fund intended to compensate investors who lost money invested as shares on companies listed on the BSE.

The Stock Exchange confirmed to BusinessPost this week that, BSE has been prompted to establish the fund to raise money which can be used to reimburse the investors.

It has emerged that BSE is under pressure to set up the fund, following concerns that investors are losing confidence on the stock market in this country as a result of lack of protection or insurance on money invested as shares on BSE listed companies.

Research and think tank organization, Botswana Institute of Development and Policy Analysis (BIDPA) has warned that shareholders are at high risk of losing capital as the Non-Bank Financial Institute Regulatory Authority, has no capacity to detect suspicious trading activities that could result with loss of money to shareholders. NBFIRA is a government owned institution that regulates the non-bank financial sector, including stock market.

Meanwhile, BIDPA investigations in the stock revealed that due to shortage of staff, NBFIRA has no capacity to enforce laws and regulations that control trading of shares. Unfortunately, it was observed during the interviews that there is lack of resource capacity at NBFIRA to enforce laws and regulations necessary to protect shareholders’ rights.

Apparently, there is only one qualified officer at NBFIRA who is dedicated to the surveillance of the capital market activities. Moreover, there is no electronic surveillance system at NBFIRA that would automatically detect suspicious trading activity on the local bourse,” BIDPA researcher Ratang Sedimo.

She indicated that government has given NBFIRA a huge role without adequate resources. “NBFIRA is charged with regulating the entire spectrum of non-banking financial institutions, including the capital and stock market, hence there is a serious resource constraint to discharge such a huge task,” said the researcher.

The researcher added that BSE regulations do not give any remediation tools for misappropriation once it has occurred. “In cases where firms deal maliciously with their shareholders, mostly through expropriation of returns, and ends up liquidated, the BSE is limited in the extent to which it can provide compensatory aid to shareholders,” she said.

BSE has indicated that in its bid to enhance investor confidence in the stock market, following the concerns, it has decided to establish “The Botswana Stock Exchange Limited (BSEL) Investor Compensation Fund” which is a rescue fund intended to grant compensation to investors for losses suffered as a result of dishonesty by managers of listed companies or liquidation of listed companies.

“Through the fund investors will be granted compensation for losses suffered as a result of participants’ non-fulfilment of contractual obligations due to, dishonesty, insolvency, default or liquidation of the listed company. The Fund will cover all investors in BSE listed entities,” said BSE marketing manager Thapelo Moribame.

When asked to comment on when the fund could start operating, Moribame said, “The Draft Investor Compensation Fund Rules have been published for stakeholder and public comment. After consolidating and considering all views and recommendations, the Rules will go through some internal approvals before seeking approval from our Regulator NBFIRA. Because of this approval process we do not have a definitive commencement date for the Fund.”

BSE has indicated that the fund is planned to raise compensation money, through contributions by listed companies and the Exchange and added that money in the fund will be invested. “The fund shall principally consist of contributions made by participants and the Exchange and interests accruing from the investment of the Compensation Fund,” said the BSE.

Business

Food prices continue to rise, but at a slower rate

28th November 2022

Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.

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Business

Still doing business the old way?

18th November 2022

It’s time to get business done better with MTN Business Botswana’s ICT Solutions.

Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.

More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.

Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.

A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.

Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
MTN’s evolution

For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.

As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.

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Business

BIE to vitalize the Dignity of Engineers

9th November 2022

Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in  which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.

The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.

Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.

“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.

He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.

Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.

“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.

He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.

He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc

“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran

Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.

“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.

Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that  the BIE provides a fertile environment where they can meet, share ideas and grow professionally.

“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.

He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.

“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams

He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .

Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution  said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.

“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.

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