The technological advancement in the financial world, over the last two decades, has significantly increased competition among stock exchanges globally.
This competition has pressured many exchanges to adopt business models, which have greatly improved their efficiencies and effectiveness.
In Botswana, the Botswana Stock Exchange Limited (BSEL) has been hailed for ensuring that the local economy has an avenue for companies to raise capital for development.
At an event marking the local bourse’s 30 years anniversary the Minister of Finance and Economic Development – Kenneth Matambo, said that the BSEL listed companies account for a significant contribution to the economy of Botswana.
Matambo further said that the exchange has shown extraordinary leadership in regulating listed companies and the brokerage community in accordance with the set rules and standards.
“Through innovation and technology, products and platforms were introduced that enable the Exchange to operate efficiently,” said Matambo.
The new technology, Matambo said, positions the local bourse to play a significant role in the deepening of the capital market through new public offerings by both domestic and foreign entities.
Matambo said government is putting in place prudent regulation of the market, including clear leadership on the development of the capital markets.
Matambo also noted that growth experienced by the stock exchange over the past three decades has contributed positively to economic development by providing a platform for savings to be channeled to investments in the country through the BSEL.
Formally established in 1989, the local bourse ÔÇô Botswana Stock Exchange Limited or BSEL continues to be pivotal to Botswana’s financial system.
With effect from 02 August 2018, the BSE transformed from a statutory body collectively owned by government and stock brokers to a company.
Following an independent valuation of propriety rights by RMB Botswana in 2018 a new ownership structure for BSEL emerged which saw the government retaining majority shareholding.
Under the current ownership structure the government stake has been pegged at 81.3 percent, while Stock Brokers Botswana and Imara Capital leads the brokering family with 5.75% each, Motswedi Securities at 4.32 percent and African Alliance (2.88%).