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PPPs require careful planning, Nyamadzabo

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Government wants to first conduct due diligence before it enters into joint ventures with private companies, hence the delays in the implementation of Public-Private-Partnerships (PPPs), says Dr. Taufila Nyamadzabo.

The Secretary for Economic Affairs in the Ministry of Finance said government will not rush to implement the PPPs as it wants to safeguard the country’s interests. “There has been a slow pace in implementing PPPs and I think the major issue is how to guard the government interests in the process when implementing PPPs,” said Nyamadzabo.

He was addressing delegates during a budget review meeting organised by First National Bank Botswana. “It’s not that we just get money from the private sector but what we need to do is also to protect government interests when implementing PPP projects,” he said, adding that negotiations should also be done properly.

Another cause for delays in implementing PPPs is the lack of specialists in the area.“There has been also a problem in staffing the unit that is going to be responsible for PPPs,” he said.

Nyamadzabo however said the government has trained many people in the country to be involved in PPPs. He however revealed that government joint ventures with private companies were in the pipeline such as Morupule B to extend production by 300 megawatts.

Meanwhile Minister of Finance and Development Planning, Kenneth Matambo said the government approved the Strategy on Private Sector Participation in Land Servicing in April 2015. “Among the areas already identified for piloting the initiative include Gerald Estate Block 1 and Central Business District in Francistown, Kasane, Ramotswa, and Morwa/Bokaa area in Kgatleng District,” said the minister.

He said under this strategy, the private sector is expected to participate in land servicing. PPPs are complex contractual arrangement between the government and the private sector incorporating a specific time and risk sharing relationship.

The advantages of PPPs include risk sharing, accountability, innovation and best practice methodologies accompanied by clear monitoring and regulation.

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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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