Local companies are thriving.
More pension fund money is being repatriated
Listed equities fit the profile of pensioners
Botswana’s pension funds have seen a significant rise in value, with investments in locally listed stocks increasing by more than P7 billion over two years since 2023.
This sharp rise, as calculated by Investor Mail, factors in strong market performance and a shift in asset allocation that directly impacts pensioners and investors.
The surge is largely driven by rising stock prices on the Botswana Stock Exchange (BSE) and new regulations requiring asset managers to repatriate more pension funds into the local economy.
Stock market performance:
Botswana Stock Exchange Domestic Company Index (DCI) grew by 12.5% in 2024, following a 15.6% rise in 2023—contributing to higher valuations of pension fund investments.
Foreign Company Index (FCI) appreciated by 15.0% in 2024, compared to 57.7% in 2023.
Digging Deeper
Overall Growth in Primary Listed Companies:
From January 2023 to November 2024, the pension fund investments grew from P16,044.5 billion to P21,679.4 billion, representing a total increase of approximately P5,634.9 billion (about 35.1% growth).
Key Growth Periods:
July-September 2023 showed significant growth, increasing from P17,184.2 billion to P18,547.5 billion.
July-November 2024 saw another strong growth period, rising from P19,850.3 billion to P21,679.4 billion.
Notable Trends of investment in primary listed companies:
The growth was stronger in 2023 compared to 2024
There was a brief decline in early 2024 (January-February)
The second half of 2024 showed renewed momentum, particularly from June onwards
The growth of investments in dual-listed equities was as follows:
Overall Performance:
Total growth from January 2023 to November 2024: 98.19%
Value increased from P1,881.9 billion to P3,729.7 billion
Notable Periods:
Strong growth began in the second half of 2023
2024 showed exceptional growth, with values rising 75.10% from December 2023.
Investment Split in Listed Equities
At the end of 2023, investments in Botswana's primary listed equities made up 13.9% of pension funds' local investments, and this increased to 14.3% in 2024.
Investments in dual-listed equities accounted for 1.5% of local investments in 2023 and rose to 2.5% in 2024 as fund managers moved these funds from offshore listed companies.
Trading activity:
In 2024, most of the trading activity was driven by local investors, according to the Botswana Stock Exchange (BSE). Local companies made up 77.2% of the total equity turnover, while local individuals contributed 11.6%. Out of the total turnover of P1.66 billion, local companies accounted for P1.2 billion.
Top 3 Traded Companies:
Sechaba led the way with P338.2 million in trading volume.
CA Sales followed closely with P164.5 million.
FNBB had P162.4 million in trades.
Market Share of the Top 3:
Together, these three companies represented 40.1% of the total stock market turnover.
Sechaba alone made up 20.4% of this total, showing its significant role in the market.
Growth in Share Prices:
CA Sales saw the largest increase in its share price, up by 77.8%.
Sechaba followed with a 41.4% rise in its share price.
Standard Chartered Bank experienced a 32.3% growth in its valuation.
A Strong Year for Domestic Companies
Total Market Growth:
The overall equity market grew by P88.7 billion (or 14.8%) by the end of 2024, reflecting a healthy increase in the value of the stock market.
Domestic Companies' Contribution:
The market capitalisation of domestic companies grew from P47.93 billion in 2023 to P53.99 billion in 2024, adding P6.1 billion to their total value.
This represents a 12.4% increase in the market value of local companies.
Foreign Market Growth:
A large part of the market growth came from the foreign equity market, which saw a 15.0% increase in its market capitalisation.
More pension funds invested locally:
As of November 2024, pension funds had allocated 42% of their investments within Botswana, near the target of 44% by the end of 2025.
An estimated P2 billion is expected to be repatriated into Botswana’s economy in the coming year.
Stronger pension value
Pension funds' investments in Botswana’s listed companies grew by 41.7% from January 2023 to November 2024.
Dual-listed companies experienced a remarkable 98.19% increase.
Primary-listed firms recorded a 35.1% gain.
The Forces Behind the Growth:
Regulatory changes require 50% of pension assets to be invested locally in a phased approach, increasing liquidity in the Botswana Stock Exchange.
Rising share prices have played a significant role in boosting the value of pension fund portfolios.
Dual-listed companies—such as Anglo American—led the charge (FCI outperformed DCI in 2024).
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