Botswana Stock Exchange debt listings jump 100%

The Botswana Stock Exchange recently experienced a record-breaking trading day, with the number of listed debt securities doubling to a total of 92 after 46 new debt securities were listed on the Exchange. CNBC Africa spoke with Thapelo Tsheolo, the CEO of the Botswana Stock Exchange, to discuss the factors behind this achievement and the future outlook for the market. Thsheolo attributed the success to a combination of hard work, strategic planning, and regulatory changes that have attracted more securities to the market. These changes include improvements to listing rules, requiring all bond memorandums and pricing supplements to be listed on the exchange to enhance transparency and compliance. Additionally, the Exchange significantly reduced listing fees and offered fee incentives for issuers, leading to increased interest and participation. Looking ahead, Tsheolo shared ambitious targets for the Exchange, aiming to increase the number of listed instruments by 50% to 130-140 by 2026. He highlighted the growing interest in commercial paper, particularly from the financial services and FMCG sectors, as well as property companies exploring opportunities in the market. While debt securities have seen significant growth, Tsheolo noted that asset-backed securities are progressing slowly due to the need for structuring and market education. The Exchange is actively working to promote these instruments and expects gradual development over time. On the equity side, Tsheolo discussed the impact of the COVID-19 pandemic on listings, with several companies delaying their plans. However, he remains optimistic about potential listings in the coming months and emphasized the careful process involved in bringing companies to market. In terms of pipeline development, the Botswana Stock Exchange has implemented a comprehensive listings framework that involves market intelligence, company engagement, and education. By understanding prospective companies, engaging with them directly, and leveraging past success stories, the Exchange aims to attract new listings and support growth in the market. Overall, the Botswana Stock Exchange is poised for continued growth and diversification in the coming years, with a focus on expanding listings, promoting different asset classes, and fostering a supportive environment for new issuers. With strategic initiatives in place and a strong commitment to market development, the Exchange is on track to further enhance its position as a key player in the region's financial landscape.