Overview

The Botswana Stock Exchange is a small but thriving exchange located in Gaborone, Botswana. The Botswana share market was established in 1989 and became the Botswana Stock Exchange in 1995. It is governed by the Botswana Stock Exchange Act. The Exchange has a small, stable listing. All listings are included in the only index, the Botswana Share Market Index, which is weighted according to the volume of shares in issue and the current bid price. As well as equities, BDC bond and Investec Floating Rate Note are traded. Private investors are estimated to account for under 10% of the total market capitalisation.

The licensing authority for brokers in Botswana is the Ministry of Finance. Membership may be corporate or individual.

Trading Conditions and Regulations

Trading days and times:
Monday – Thursday, 09:00 to 16:00
Friday 09:00 – 12:00

Trading occurs by the open out-cry system. Clearing occurs transaction by transaction.

Fees, Commissions and Taxes

Dealing costs are a percentage of total considerations on the scale:
P0 – P50,000=2%
P50,001 – P100,000=1,5%
P100,000 and over=1%
Stock exchange handling fees: P15 per bought note and P10 per sold note.
A 15% withholding tax on dividends is levied.
There is no capital gains tax.

Settlement: Due after Trade + 5 days for both local and overseas clients.

Foreign investment and foreign ownership regulations:

No one foreigner may own more than 10% of the issued capital of a publicly quoted company, and foreign ownership of the free stock of a local company trading on the Exchange may not exceed 55%.
Repatriation of funds is allowed up to P100m immediately. Amounts exceeding P100m may be required to be repatriated over a specified period.

Performance

During 1997, the Botswana Stock Exchange saw increased investor interest arising from positive economic developments such as the 1997 national budget, cheap share prices and forecasts of average corporate earnings growth of 20%. With a US$ capital return of over 90%, it was one of the best performing stock exchanges in the world that year.

Although the returns were not quite as spectacular as the previous year, 1998 was also a good year for the Exchange, as it achieved US$ capital returns of just under 15%.

Directors/Managers

Contact Person: Mr F Thomas (Francis)