IFSC companies could assist in BSE expansion

Chief executive officer (CEO) of International Financial Services Centre (IFSC), Alan Boshwaen said his organisation is well positioned to play a critical role in assisting the Botswana Stock Exchange (BSE) to grow. He said a number of IFSC accredited companies are increasingly showing interest in listing in the local bourse. Already an IFSC accredited company, African Banking Corporation (ABC) has listed.

He also revealed that he is about to conclude negotiations on a special purpose vehicle with a “multinational telecomms and technology company.” He said he is hopeful that the company would issue some of its paper in the country. The said company is listed on the London Stock Exchange (LSE).

Boshwaen was however concerned by "too much liquidity" in the country’s financial markets and higher trading costs on the BSE. He revealed that the BSE has higher trading costs when compared to Johannesburg Securities Exchange (JSE) and LSE “which have entrenched themselves as capital gateways”. He said the stock exchange may be a critical factor in the development of capital markets and economic diversification but it must first weed out some of the challenges such as higher trading costs in order to attract more new listings. BSE is the third largest stock exchange in the region after JSE and Zimbabwe Stock Exchange (ZSE), respectively. He said BSE has the potential to attract financial inflows that come into Africa yearly. “Mauritius has a small stock exchange but it is thriving as a financial hub,” he said. He also said that if IFSC succeeds, it would provide the BSE with an opportunity to play a larger role in regional capital intermediation. He acknowledged that diminishing status of the country as an oasis of tolerance in a sea of turbulence because other countries in the region are increasingly catching up with us. “This then calls for aggressive marketing,” he said.