The inclusion of Botswana in the June 2012 Central African Stock Exchanges (CASE) edition, alongside Malawi, Zambia and Zimbabwe, provides a definitive and useful marketing medium driving brand to high-end clientele within central and southern Africa.
During the launch of the BancABC sponsored 2012 edition of CASE handbook last week, BancABC Botswana Managing Director, Jitto Kurian, said the current edition now profiles over 130 companies, including contact details, 2011 financial results, liquidity levels, share price performances, volumes traded, stockbrokers and custodial services in the four countries.
“The listing of the top 20 shareholders of all companies makes the handbook a valuable resource for regional investors, providing an independent overview of the 2011 as well 2011 financial years,” said Kurian.
“However, the handbook is intended to inform rather than advise potential investors of company prospects in the financial year ahead, while the profiles are not a recommendation to buy or sell securities,” he said.
The handbook is an annual publication by New Zanj, an independent compiler of economic data and company analysis.
Botswana Stock Exchange (BSE) CEO Hiram Mendes said from a regulatory perspective cataloguing listed companies in the handbook minimises the propagation of asymmetric information and opportunistic behaviour leading to moral hazard, exacerbated in situations where managers are also shareholders.
“Research has shown that opportunistic behaviour is attributed to a divergence of objectives between management and shareholders,” Mendis said.
He said over the past 15 to 20 years with the advances in IT stock markets the world over have improved on their obligations such as central depositories for clearing and selling transactions and automated trading to reach a large number of national and international investors.
“Likewise, corporate governance has come into the limelight in the past 10 years with the realisation of the importance of communicating with investors. As a result, BSE has a vested interest in the CASE launch. Some BSE milestone achievements include implantation of the Cash Securities Depository in 2008 and the current Automated Trading System (ATS) project.”
The 2012 CASE version profiles a total of 146 companies within the four countries’ stock exchange markets broken down as follows; Botswana 23 domestic and 12 foreign companies; Malawi 14, Zambia 21 and Zimbabwe 76 companies.
Although 2011 was an uncertain year economically, BSE beat the 1994 high performance index, progressing on all fronts and ranked the world’s 8th best performing market in 2011 by the Business Insider. Out of a total of 10 listings, six were equities, one ETF and three bonds. If the 2012 listings of Choppies and Hana Mine are included, the number increases to 12.
Turnover during the period under review annual turnover was P1, 007.9 million with an average daily turnover of P4.1 million and 458.7 million shares traded.
ABC Holdings Group Chief Executive Officer Douglas Munatsi sponsorship of the 2012 CASE handbook not only creates valuable partnerships with listed companies but also assists potential investors understand that they should build rewarding partnerships within SADC and continue investing in these markets. BancABC’s vision lies in becoming the preferred partner offering world class solutions and enhancing African routes and footprint in the five markets, Mozambique, Tanzania, Zambia and Zimbabwe, apart from Botswana.
BancABC has been in Botswana for the past 26 years from the humble beginnings of UDC in 1986.
The bank launched retail banking across the Group in 2009 and has four branches in Botswana located (in Gaborone) The Square, Game City, Fairgrounds and Francistown.
“We aim to open six branches in the Gaborone Airport Junction and Industrial, Selebi Phikwe, Palapye, Maun and Molepolole. To date, the Group has launched 50 representation points and aim to have 72 by year end,” ABC Holdings Group Chief Executive Officer Douglas Munatsi said.
“Since launching the first 100 percent mortgage product in Botswana, we have disbursed P85 550 035.94 million. Being the first to launch the visa chip & pin debit, credit and pre-paid cards, we have issued over 7 700 pre-paid in Botswana. We continue to successfully roll-out the visa cards in Mozambique, Tanzania and Zimbabwe,” he added.