BSE Is Restocking Its Shelf. So You Can Invest More, for Less
Investing on the Botswana Stock Exchange (BSE) is a bit like going shopping. There are many good things on the shelves, but more and more people are lining up to buy.
Investing on the Botswana Stock Exchange (BSE) is a bit like going shopping. There are many good things on the shelves, but more and more people are lining up to buy. Dont get it wrong, the BSE is not small. It’s actually the third biggest stock exchange in Southern Africa, with multiple investment options for you: more than 160 securities and over P50 million traded every day so far this year.
But even with all that, the options are still not enough for the growing demand for investing. The exchange is now expanding its menu, adding more choices and restocking its shelves to give ordinary Batswana more ways to grow their money through international companies.
The exchange said it is reviewing applications to list three new Exchange Traded Funds (ETFs), a type of investment that makes it easier and cheaper for ordinary people to invest in a variety of companies at once.
If these are approved, it will bring the total number of ETFs on the BSE to seven, giving Batswana more options beyond the usual investments tied to gold (which is bought for risk management and tactical reasons) and other commodities.
Only one of the current ETFs, the Africa Domestic Bond Fund (ADBF), pays out regular income to investors. This fund puts money into bonds (loans to entities) from African countries and shares the interest with investors.
What Is an ETF, and Why Should You Care?
These ETFs are a bit like a ready-made meal for investors. Instead of buying individual ingredients (shares), you buy the whole dish, a bundle of companies, served in one package, and traded like a normal stock. You will be buying these ETFs just like you would buy any other share on the BSE.
They are cheaper, faster, and more diversified than doing it yourself.
Where is this whole dish from?
According to the BSE, the three new ETFs will give Batswana a chance to invest in:
The United States: This fund will track the top 500 companies in America, known as the S&P 500.
These include tech giants like:
Alphabet (Google)
Amazon
Apple
Microsoft
NVIDIA
Meta (Facebook)
Tesla
Coinbase
These are some of the world’s most valuable companies and have helped shape how we live, shop, work, and communicate. You might be reading this through their products.
Developed Markets: BSE said this second ETF spreads money across 23 rich countries like Japan, the UK, Canada, France, Switzerland, and Singapore. It covers over 1,300 companies, giving investors a wide mix of strong, stable businesses.
Emerging Markets: BSE said the third ETF invests in 24 fast-growing countries such as India, China, Brazil, Egypt, South Africa, and the UAE. These are countries on the rise, where businesses are expanding rapidly and offering long-term growth potential.
The Dish Is Meant To Be Affordable, And For Everyone To Indulge
Getting your Pula into these foreign companies or investments is like trying to fly with no passport. It’s expensive, complicated, and often impossible for small investors like me and you.
ETFs change that. They are listed in Pula because they are considered local assets, traded on the local exchange, and do not require setting up a foreign account, but you have to have an account with one of the two stockbrokers.
“These 3 new ETFs are particularly important and exciting because they will offer local investors exposure to foreign markets and foreign companies that are not easy to invest in if you go at them alone,”
the BSE said.
More Dishes Being Prepared
BSE said seven more ETFs have already been approved as local assets and are waiting for the green light to list on the BSE. A local asset status allows investment instruments generating returns from offshore to be considered local assets and listed on the BSE.
With these new listings, Botswana is taking serious steps to become a major investment gateway in Africa.
The BSE said these ETFs will:
“Cement our position as one of the leading providers of diversified, publicly traded investment instruments in Sub-Saharan Africa.”
BSE is not just for big money managers, but for everyday people who want to grow their money over time.
Limited Variety of Dishes Available to Feed Everyone
These new ETFs are important. There are many good companies listed on the BSE. This explains why many investors are holding on to the shares of the companies. Right now, many people want to buy shares, but not many are willing to sell. The ETFs will allow others to be part of the investment ecosystem.
Because Many Are Still in the Queue For Their Turn
The BSE said it’s seeing more buyers than sellers in the market. In simple terms, demand is high, but supply is low.
Many Still Feasting
This is not surprising as BSE observed that with prices of goods (inflation) staying low, people are earning better profits from shares, so they are choosing to hold onto them instead of selling, even when there is a chance to make money by selling (selling at a higher price than you bought).
Waiting For Dessert
Investors are holding on tight to good shares, waiting for even better returns.
