from ODIRILE TOTENG in Gaborone, Botswana
Botswana Bureau
GABORONE, (CAJ News) – THE Botswana Stock Exchange (BSE) has been an embodiment of resilience and growth despite the domestic economy sliding into a technical recession in 2024.
Statistics indicate that the country’s real domestic product (GDP) declined by 0,5 percent in the second quarter of 2024, and by 4,3 percent in the third quarter, as contraction in the diamond market deepened.
The government has also cautioned that the contraction in GDP in 2024 could be greater than 1,7 percent should additional risks materialise.
However, the BSE has seen remarkable growth across various indicators in 2025, which has underpinned the resilience of local corporations and their contribution to domestic economic output.
The total size of the equity market has grown by P88,7 billion ($28.56 billion) or 14,8 percent as at end of year, mainly driven by a 15 percent growth in the foreign equity market capitalisation.
Meanwhile, domestic companies added P6,1 billion ($470 million) to their total size, a growth of 12,4 percent in market capitalisation.
As at year end, the top gainer on the BSE was a foreign company, CA Sales.
It led the bourse with gains of 77,8 percent in its share price, with another foreign company among the top five gainers being Investec with gains of 31,3 percent.
BSE reports that any improvement in the trading levels of dual listed companies such as these ones is a positive indication of improving liquidity and vibrancy in the local market.
“To this end, the BSE has done extensive work in this regard to import foreign stocks’ liquidity into the local market and even lure market-makers onto the BSE to promote a consistent flow of liquidity,” it stated.
BSE believes the noticeable resilience and growth of the bourse in 2024 underscores the critical role of stock markets in economic development, particularly by facilitating capital allocation and enhancing liquidity, which in turn stimulates investment and economic expansion.
It reports that in 2024, significant amounts of capital have been raised by both government and private sector using instruments listed on the BSE.
“Similarly, capital has been returned to shareholders, including government, and bondholders through dividends and interest.”
– CAJ News