Botswana Stock Exchange lists two Exchange Traded Funds

The Botswana Stock Exchange has made a significant announcement today with the listing of two Exchange Traded Funds (ETFs). The Cloud Atlas S&P Africa Sovereign Bond and Cloud Atlas AMI Big 50 ETFs will provide investors with access to hard currency bonds and African equities. Thapelo Tsheole, CEO of the Botswana Stock Exchange, joined CNBC Africa to discuss these new listings and their impact on the market. The Cloud Atlas S&P Africa Sovereign Bond ETF is a fixed income fund that offers a portfolio of dollar-denominated bonds issued by African countries such as Egypt, Ghana, Kenya, Morocco, Namibia, Nigeria, and South Africa. Cloud Atlas has combined these bonds to create an ETF that will be traded on the Botswana Stock Exchange. This will provide investors with exposure to these dollar-denominated sovereign fixed instruments. The Cloud Atlas AMI Big 50 ETF focuses on African equity portfolios outside of South Africa, covering 15 sectors in 14 different countries. This ETF simplifies access for investors to own a diverse portfolio of shares from various African markets. The listing of these two ETFs opens up new opportunities for investors in Botswana and across the world to easily access African markets through the Botswana Stock Exchange. Tsheole highlighted the significance of these listings, especially at a time when securing new listings in Africa has been challenging. He mentioned that the exchange is looking to add two additional ETFs and possibly one equity listing by the end of the year, reflecting a positive outlook for the exchange. Tsheole acknowledged the difficulties in convincing companies to join the capital markets, noting that African governments still control a significant portion of the economy. Privatization across Africa has been slow, with governments playing a major role in many sectors. To address this challenge, the Botswana Stock Exchange is focusing on building up small and medium enterprises through mentorship programs to prepare them for eventual listings. The exchange is committed to nurturing these companies for future listings to spur private sector growth. The CEO also discussed the practicality of trading these ETFs for African investors. He explained that investors from countries like Zambia can access the ETFs through local brokers who will facilitate the purchase on the Botswana Stock Exchange. This seamless process allows investors to benefit from dividends and interest payments while supporting the growth of African markets. The launch of these ETFs on the Botswana Stock Exchange represents a significant step towards increasing access to African bonds and equities for investors. With a focus on diversification and simplifying investment opportunities, these listings offer a gateway to Africa's growth story for both local and international investors. Tsheole's commitment to expanding the exchange's offerings and supporting small and medium enterprises demonstrates a forward-looking approach to strengthening the capital markets in Botswana.