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Bots, Zim explore trade opportunities

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Top government officials from Botswana and Zimbabwe as well as captains of industry from both countries this week embarked on a journey that is expected to see the countries taking advantage of trade and investment opportunities that exist between the two. Though Zimbabwe is said to be one of Botswana’s leading trade partners in the region, there has been a decline in trade between the two countries in recent years.

Speaking at the Botswana-Zimbabwe Business Forum on Tuesday, Minister of Investment, Trade and Industry, Vincent Seretse said Botswana’s export to Zimbabwe declined by nine percent on a cumulative basis from P827 million to P555 million between the period 2012 to 2016. Imports from Zimbabwe into Botswana on the other hand also followed a similar pattern and fell by eight percent cumulatively from the same period with the overall balance of trade in favour of Botswana. Botswana’s recorded export basket to Zimbabwe comprises of salt, veterinary medicine, live animals, vehicles among others. Zimbabwe however, has been a consistent source of timber, sugar and cement for Botswana.

Seretse said currently, there are several companies with Zimbabwean shareholding operating in Botswana’s manufacturing industry. The majority operate in the timber and sugar packaging industries. “These companies have over the years invested around P132 million in Botswana with an estimated annual turnover of P392 million,” Seretse said, adding that these companies have employed around 436 permanent employees and an additional 436 part-time employees.

This, according to Seretse, excludes one of the largest investments with Zimbabwean shareholding in the mobile telecommunications sector. Seretse believes that the existence of a Double Taxation Avoidance Treaty between Botswana and Zimbabwe will facilitate cross border value chain linkages and Joint Venture partnerships. The Treaty was singed on June 16, 2004 and ratified by Botswana on August 3, 2004 entered into force on February 25, 2008.

He further said Botswana has since proposed to amend Article 25 of the Agreement to align it with internationally agreed standards on transparency and exchange of information for tax purposes. Both Botswana and Zimbabwe are expected to have committed to sign the amended agreement by June 30, 2018. “I requests our governments to openly engage with business community and try to amicably address any issues related to Non-Tariff measures to facilitate more trade flows,” Seretse said. Botswana and Zimbabwe have trade facilitation instruments including the Botswana/Zimbabwe Bilateral Trade Agreement, which allows for goods traded between the two countries to be exempted from payment of customs duties, provided they meet the minimum requirement of 25 percent local content.

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BSE upgrades online investor access

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A recent BSE opening bell function.

Botswana Stock Exchange Limited (BSEL) will this year introduce a new clearing and settlement system, as part of efforts to improve operations of the bourse.

Speaking at the seventh opening bell ceremony, Chief Executive Officer, Thapelo Tsheole said the development will help improve liquidity and risk management. In addition, the new settlement system replaces the 2008 system while fast tracking introduction of security borrowing and lending, management settlement guarantee fund, as well as identifiers for companies and instrument.

BSEL has already awarded a contract to a Swedish company to implement the system which is also expected to digitalize Initial Public Offering (IPO), allow electronic voting for listed companies during annual general meetings (AGM) for absent shareholders.

The project, which is expected to take eight months once the two parties sign the deal, is part of efforts to have more online investors access for BSEL. Tsheole also revealed that BSEL website will undergo a revamp this year, allowing it to be more analytic, live feed shares, as they trade.“The tender is already out for the website and mobile application. It is a project that we had hoped to implement last year but because of logistic problems, we could not do it,” said Tsheole.

BSEL further plans to introduce two data display screens at CBD and at the stock exchange.“These will assist with information sharing and keep the market updated,” said Tsheole. Meanwhile, BSEL will not change its Automated Trading System (ATS) until 2022, according to Tsheole.“The system supports our strategy to grow the market and increase the average daily turnover levels to 18.0million per day by 2021,” said Tsheole.

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BSE complies with reporting guidelines

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Botswana Stock Exchange Limited (BSEL) has become the 5th bourse in Africa to comply and publish Environment, Social and Governance (ESG) reporting guidelines.

The development comes a year after BSEL became a partner exchange of the United Nations Sustainable Stock Exchange (SSE) Initiative.“The BSE made a commitment to publish guidance on ESG Reporting. This commitment has been fulfilled.“

We are the 42nd among the 81 SSE Partner Exchanges globally and the 5th in Africa to do this,” said Kgotla Segwe, Market Development Specialist at Botswana Stock Exchange Limited.
Other stock exchanges that have complied with the SSE initiative on the continent are from South Africa, Nigeria, Morocco and Egypt.

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