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BSE equity turnover surpasses P700 million

The Botswana Stock Exchange (BSE) traded shares worth over P700 million between January and July 2022, following an increase in volume of shares traded in the local bourse, according to company’s market performance report released this week.

According to the report trading activity between January and July 2022 was high, leading to a turnover amounting to P777.3 million.

The report shows that trading activity during the review period in 2022 increased by 109.7% from the corresponding period in 2021 and during this period in 2022 the BSE recorded two large trades that contributed to the highest turnover amounting P186.8 million and P142.9 million in a single day. The highest trades between January and July 2022, according to BSE occurred on 23rd March 2022 and 17th June 2022. “As at the end of July 2022, a total equity turnover of P777.3 million was recorded from traded volumes of 352.4 million shares between January and July 2022. Turnover during the corresponding period in 2021 amounted to P370.7 million and a total volume of 267.0 million shares traded were recorded,” said BSE.

BSE stated that the top three traded companies during the period under review were Letshego which traded shares worth P428.7 Million, FNBB (P59.3 Million) and Sefalana (P57.9 Million). The total turnover from these 3 companies accounted for 70.2% of total equity turnover, with the leading counter Letshego accounting for 55.2% of total equity turnover, according to BSE.  “Letshego’s considerable contribution to total equity turnover results from two significantly high trades of P183.0 Million on 23rd March 2022 and P142.7 Million on 17th June 2022 accounting for the two highest daily trades per counter in 2022 thus far. In comparison to the same period in 2021, the top 3 traded companies accounted for 45.7% of total equity turnover with the leading counter Letshego accounting for 18.% (P67.2 Million) of total equity turnover.”

 

BSE stated that of the 31 listed companies, 8 depreciated in share price, 15 appreciated in share price while 8 experienced no share price change and added that the top gainer over the 1 January to 31 July period was Botswana Diamonds (BOD) with an appreciation of 25.0%, followed by Standard Chartered Bank and Letlole with gains of 21.4% and 17.6% respectively. “BBS experienced the biggest decline in share price of 39.2% followed by Lucara and PrimeTime (PrimeTime Property Holdings) with declines of 13.1% and 11.9% respectively.”

 

According to BSE Local companies recorded the highest equity turnover, as they contributed 61.0% (P473.9 million) to total equity turnover, followed by foreign companies which contributed 32.1% or P249.7 million, local individuals (3.9% or P30.5 million) and foreign individuals contributed 3.0% or P23.1 million.

The BSE provides a platform for government, parastatal and private companies to raise capital by trading equities, (shares) bonds, commercial paper, and asset backed securities, special acquisition companies, exchange traded funds, investment funds and depository receipts. Companies trading in the stock market, are from different sectors of the economy, including agriculture, banking, financial services, wholesaling & retailing, tourism, energy, mining & materials, property & trust, security and telecommunications.

 

Observers believe that BSE equity market is likely to rebound in the coming years, after recording a steady decline since 2015. “Equity market capitalization on BSE has been in steady decline since 2015, due in large part to consistent net de-listings and a lack of new listings of equity since 2018. However, there are indications that its performance is likely to rebound in the coming years, with expectations of an aggressive promotion of the listing value proposition by the BSE,” said Africa Bright (AB) Investment Bank Chairperson Naoufal Bensalah. In 2021 the BSE partnered with Bloomberg to enhance its visibility and launched its mobile application, which offers most of its web-based trading options.

 

According to BSE CEO Thapelo Tsheole, the company’s priorities going forward include increasing company listings. “Costs associated with listing, mostly paid to intermediaries, need to be lowered to encourage more initial public offerings,” said Tsheole.

 

The BSE offers small and medium-sized enterprises less onerous listing and capital-raising requirements, as well as training and mentor-ship programs to support their participation in the equity market.

 

According to BSE recent update the local bourse has equity market capitalization of $33bn with 31 equity listings, 46 fixed-income offerings and 6 exchange-traded funds. There are diverse investment base, with 23.3% of assets held by foreign companies, 3.4% by foreign individuals, 61.5% by local companies and 11.8% by local individuals.

 

The BSE provides a platform for government, parastatal and private companies to raise capital by trading equities, (shares) bonds, commercial paper, and asset backed securities, special acquisition companies, exchange traded funds, investment funds and depository receipts. Companies trading in the stock market, are from different sectors of the economy, including agriculture, banking, financial services, wholesaling & retailing, tourism, energy, mining & materials, property & trust, security and telecommunications.

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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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Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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