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BSE to collaborate with Zimbabwe Stock Exchange

Publishing Date : 03 September, 2019

Author : AUBREY LUTE

Botswana Stock Exchange (BSE), one of Africa’s fastest growing securities markets, will join hands with Zimbabwe Stock Exchange (ZSE), one of Africa’s oldest bourses, a joint statement the two financial markets reveals.


The Thapelo Tsheole led bourse announced in a statement that they will sign a Memorandum of Understanding (MOU) as a basis for co-operation to help foster the prosperity of the two financial markets. “This will be to promote cross border investments, cross border listings and explore further opportunities for co-operation between institutions” reads the statement. The MOU will be signed by the CEO of Botswana Stock Exchange, Thapelo Tsheole and the CEO of the Zimbabwe Stock Exchange, Justin Bgoni in Harare, Zimbabwe on the 16th of September, 2019.


The statement further explains that a joint strategy has been unveiled between the two partners to provide the Exchanges with a framework for cooperation in areas of; product and market development, promotion of cross listings, which shall include the Exchanges formulating common fast track listing requirements for companies seeking secondary listing in either market, as well as a revenue sharing agreement on initial listing and continuing obligation fees paid by issuers.


Both exchanges will work on the creation of a framework, in conjunction with the respective regulators that will make it easier, quicker and cheaper for companies to cross list, by simplifying issues such as exchange controls, fungibility and regulatory harmonization. Another area of focus will be information sharing on key areas in developing capital markets.


Botswana Stock Exchange Chief Executive Officer Thapelo Tsheole, says the partnership between the two institutions will go a long way into contributing towards development of the SADC regional capital market and by extension Sub Saharan Africa. “We are happy to partner with the Zimbabwe Stock Exchange as an extension to our mandate and contribute not only to the development of the capital markets, but the region as a whole.” he said. Tsheole added that the collaboration will promote the values that BSE stands for as members of the SADC Committee of Stock Exchanges, as well as the African Securities Exchanges Association (ASEA).


For his part, the Tsheole’s counterpart Chief Executive Officer, Zimbabwean Stock Exchange Justin Bgoni, said it was a great milestone for the two financial markets to collaborate. ‘We are excited about the new partnership with Botswana Stock Exchange and the prospect of a gateway for our companies to raise hard currency on the exchange. This partnership will foster the development of the capital markets and contribute immensely to the economic development of Zimbabwe and SADC. For us, it is a practical step towards the upliftment of our two economies.’


The Zimbabwe Stock Exchange or ZSE, is the official stock exchange of Zimbabwe. Its history dates back to 1896[2], but has only been open to foreign investment since 1993. The exchange has about a dozen members, and currently lists 63 equities. There are two primary indices; the ZSE All Share and the ZSE Top 10. The Botswana Stock Exchange was established in 1989 as Botswana share market and became the Botswana Stock Exchange in 1994 by an act of parliament as a statutory parastatal under the Ministry of Finance. 


BSE demutualized to become a company incorporated under and in terms of the Botswana companies act in August 2018, subsequently changing to Botswana Stock Exchange Limited (BSE Ltd) and divorcing  the statutory entity tag to take in full swing the profit making company status generating return on investment for its shareholders. As of 2nd August 2018, the stock market now operates in the ownership setup similar to that of major exchanges such as JSE & Nairobi Stock Exchange. Botswana Stock Exchange is now a registered company under the Companies & Intellectual Property Authority (CIPA) Botswana.

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