How to Buy Bonds in Botswana

Botswana Innovation Hub, power generation, transnational transport corridor network, tourism sector, and consulting / professional services sector offer good opportunities to invest in Botswana.

The first step to buying shares is approaching a licensed BSE Broker. Brokers have licensed agents given the authorization to buy and sell shares on your behalf as an investor. Over and above facilitating the transaction (buying or selling) of shares, Brokers also provide financial advice on which stock to buy or sell. All Brokers are required to meet certain standards such as acquiring appropriate qualifications (such as Registered Persons Examinations or RPEs), and experience and must comply with the BSE Member Rules.

  • Bonds are debt instruments where the borrower – in this case, the Government of Botswana – issues paper to the market where interested investors buy the paper for a specific return.
  • A bond will typically have a maturity date sometime in the future, and an interest rate (also referred to as a coupon) that is payable at certain intervals during the year.
  • Bonds trade on a yield-to-maturity basis (YTM). The YTM is calculated based on current and expected future interest rate movements for a particular investment period.
  • This YTM is then translated to a price for that bond. That price is the amount an investor would pay for the bond.
  • Bond prices vary during the life of the bond. The variations are a function of current and expected future interest rate movements.
  • Because of this, capital investments or capital values of a bond investment will vary during the life of the bond, particularly if the bond is sold before maturity.
  • An investor in bonds may gain or lose capital on the investment, depending on the movements of interest rates between the time the bond was bought and the time it was sold.
  • However, if the bond is held to maturity, the investor will receive the full nominal value of the bond.

View example

The three (3) licensed BSE Brokers are:

  1. Imara Capital Securities: (+267) 3188886/ enquiriesbots@imara.com
  2. Motswedi Securities: (+267) 3188627/ motswedi@motswedi.co.bw
  3. Stockbrokers Botswana: (+267) 3957900/ info@sbb.bw

Kindly note the BSE operates and regulates the securities market, therefore one cannot purchase or sell shares directly through the BSE.

Before any order can be taken by the Broker, the investor has to open an account with a Broker through which the orders will be taken. A CSD account will also be opened. A CSD account is an account in which the investor’s shares will be held or secured and from which statements showing the holdings will be sent to the investor. Once a trading account and a CSD account have been opened, you can now place your order and buy shares.

When the Broker receives an order, it is relayed to the BSE to be executed in a system that collects orders from several other Brokers and matches them. The system is known as the Automated Trading System (ATS). It is the Broker who does the actual buying and selling of shares on your behalf using the ATS.

Once the order has been executed, the Broker will confirm the trade to the client by sending a contract note that shows the name of the company in which shares have been bought, the number of shares, the price at which the shares were bought, and the charges incurred in the transaction. Three days (3) after the trade has been executed, the shares will be credited to your CSD account, and from that date on you will become a shareholder of the company in which you have bought the shares.

When you want to sell the shares, a similar process is followed. Brokers may be contacted by mail, telephone, or personal visits. Note that the broker may require you to pay first and produce proof of payment before placing an order to buy shares.

To comply with KYC guidelines, you will require the following to open a CSD account as an individual:

  1. Certified Copy of ID/Valid Passport
  2. Proof of Residence (Utility Bill/Lease Agreement/Affidavit)
  3. Proof of Income (Payslip and/or Bank Statement)

To comply with KYC guidelines, you will require the following to open a CSD account as a company/corporate body:

  1. Copy of Certificate of Incorporation & Copies of ID/Passport of the Directors
  2. Proof of Address (Utility Bill/Lease Agreement)
  3. Proof of Income (Bank Statement)
  4. Constitution or Resolution/Letter of Consent from the Board of Directors.

Kindly note that there is no set minimum amount that one should put aside for buying shares or any listed security. Share prices differ from one company to the next. You may go to the BSE website or check the BSE Facebook page to view the Daily Market Report which shows how the shares of different companies traded that day and the prices at which they closed. The total amount you can spend on buying shares is solely dependent on the share price of a particular company and the number of shares you would like to purchase.

For more information on investing in shares, please contact the Market Development Department via e-mail at market@bse.co.bw.

What is the best investment in Botswana?

Investment Opportunities in Botswana

  • Mining industry.
  • Manufacturing industry.
  • Power/Energy industry.
  • Education industry.
  • Arts’ industry.
  • Agricultural industry.
  • Transport industry.
  • Financial and business services industry.

How do I buy choppies shares in Botswana?

Here are the 7 steps you must follow to Buy / Purchase Choppies Group shares with utmost confidence:

  1. Start by Filling in the BUY THIS SHARE form.
  2. Insert your name, email, telephone number, and monthly remuneration.
  3. Then, Indicate the amount you are looking to invest in Choppies Group.
  4. Click the “ INVEST NOW” button.

Where can I invest my money in Botswana?

Where can I buy shares?

  • Motswedi Securities.
  • Imara Capital Securities.
  • Stockbrokers Botswana.
  • African Alliance Botswana Securities.

How can I invest in Botswana stocks?

The first step to buying shares is approaching a licensed BSE Broker.

To comply with KYC guidelines, you will require the following to open a CSD account as an individual:

  1. Certified Copy of ID/Valid Passport.
  2. Proof of Residence (Utility Bill/Lease Agreement/Affidavit)
  3. Proof of Income (Payslip and/or Bank Statement)

Should I buy Choppies shares?

If you are looking for stocks with good returns, Choppies Enterprises Ltd stock can be a profitable 1-year investment option. Choppies Enterprises Ltd’s real-time quote is equal to 79.000 ZAC on 2022-10-06, but your current investment may be devalued in the future. Get It Now!