DOCSLIB.ORG

ECONOMIC REVIEW Second Quarter April-June 2019

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
ECONOMIC REVIEW Second Quarter April-June 2019 www.econsult.co.bw compiled by KEITH JEFFERIS SETHUNYA SEJOE KITSO MOKHURUTSHE ECONOMIC REVIEW second quarter april-june 2019 in this issue ... SPECIAL KEY NEWS MACRO- FEATURE: COMMENTARY ECONOMIC HIGHLIGHTS ECONOMIC EXPORT-LED 1 VARIABLES 4 7 DATA 10 GROWTH 11 COMMENTARY Diamond market woes reinforce the need for export-led growth Introduction The second quarter of 2019 has been a very mixed one in terms of economic performance, with the main feature being a marked deterioration in conditions in the global diamond industry, and poor performance by exporters in general. On the domestic front, data releases for the first quarter show some improvements, with reasonably robust economic growth, continued low inflation and interest rates, and some easing of pressure in the financial sector. If the weakness of the global diamond market continues, how- ever, this will show up in growth, export and government budget figures later in the year. page 1 www.econsult.co.bw Economic growth the period of diamond production will increase revenues Real GDP growth in the year to March 2019 was 4.4%, over the longer term. But while the investments are being very similar to the 4.5% recorded in 2018. Growth was financed – during the second half of NDP 11 – budgetary reasonably broad-based, across both the mining and non- constraints will be a major challenge, especially given the mining sectors of the economy, and was largely in line with spending commitments made by all political parties in the expectations. The main weakness was in the wholesale run-up to this year’s general election. Government will need sub-sector, which is dominated by diamond trading activi- to respond to this challenge by prioritising the competing ties, and where negative growth reflects a lower level of ac- demands on public spending, and cutting back spending tivity compared to 2018. Our estimate of real non-diamond on unproductive or low priority programmes, projects and private sector growth was resilient at 5.2%, year-on-year. institutions. Diamond markets Monetary and Financial Conditions Sales of rough diamonds in the first quarter of 2019 were Inflation has remained at very low levels by historical stan- weaker than in 2018, and the trend appears to have inten- dards, and is still below the lower end of the BoB’s inflation sified even further in the second quarter of the year. Sales objective range of 3-6%, despite a slight increase during of rough diamonds through De Beers Global Sightholder the quarter. Low inflation reflects a lack of price pressures, Sales (DBGSS) in Gaborone were 17.5% down, by value including low food price inflation, although this is now be- on the same period in 2018. This reflects a number of influ- ginning to tick up due to low rainfall and poor harvests in ences, including weak final demand for diamond jewellery Southern Africa. To some extent, however, low inflation in the major markets (the USA and China), overstocking in may be artificial, as many regulated prices have not been the midstream (diamond cutters and polishers) and a lack increased as costs have risen, thereby requiring subsidies of profitability due to narrow margins between rough and that may not be sustainable. Inflation is likely to rise mod- polished prices, a lack of bank liquidity in India to finance estly over the next 12 months, as food prices increase, diamond stocks, and the continued downward pressure on some administered prices are adjusted, and as the impact prices of lower-value diamonds due to competition from of the recent 18% rise in minimum wages feeds through supplies of lab-grown diamonds. The weak market for to costs. There may also be demand-side pressures if the rough diamonds will in turn have an impact on the mining proposed substantial increase in public sector salaries is sector, and hence on economic growth, as major diamond implemented. mining companies – including Debswana – adjust produc- tion levels in line with demand. Alongside low inflation, policy interest rates have been kept low, and remain at the lowest ever levels in Botswana. In It also intensifies the fiscal challenges facing government. the banking sector, credit growth is weak, which may be Revenues have been in structural decline for several years, an indicator of slowing activity in the non-mining business relative to GDP, and weak diamond sales will make it dif- sector of the economy. More positively, arrears on out- ficult to achieve the 2019/20 revenue targets set out in the standing loans are declining. Furthermore, banking liquidity February 2019 Budget. Looking further ahead, some very is improving, but this mainly reflects the very slow growth large investments are required to extend the productive of bank lending during recent months. If the rate of growth lives of the major diamond mines at Jwaneng (Cut 9) and credit picks up, banking liquidity could soon become an Orapa (Cut 3). These investments will reduce government issue, and this would in turn push interest rates up, inde- mineral revenues in the short-run, although by extending pendently of monetary policy rates. page 2 www.econsult.co.bw External sector a “no-deal” Brexit, which would be disastrous for the UK Export performance was poor during the first quarter of and bad for the European Union; and potential hostilities 2019, with all categories of exports registering major de- in the Persian Gulf, with escalating tensions between the clines, according to data from Statistics Botswana. For USA and Iran, which could easily send global oil prices well diamonds, this is in line with known developments in the over $100 a barrel and trigger global inflation, recession global market, but it is surprising that export weakness has and tumbling financial markets. also been manifested across all other commodity groups; for instance, exports of beef, plastic products and vehicle A further concern, but this time a domestic one, is the parts were all down by 50% or more in Q1 2019 as com- government’s decision – now approved by Parliament – to pared to Q4 2018, as well as when compared to Q1 in increase the rate of transfer duty on property purchases 2018. This is of great concern, given the importance of by non-citizens from 5% to 30%. This is likely to under- export-led growth (see feature later in this Review). Closer mine the property market, with fewer transactions and monitoring of export performance over the coming months lower prices, as well as negatively affect the banking sys- will be necessary to determine whether this is a short-term tem and reduce the availability of mortgages. To give the problem or reflective of a deeper export malaise that needs government credit, they have softened some of the more policy attention. egregious elements of the original transfer duty proposals, following extensive consultations with the private sector. Outlook However, even though the proposed increase in the transfer Although 2019 has started reasonably well in terms of duty rate for foreigners – including foreign-owned compa- economic growth performance, there are some worrying nies - is likely to have an adverse impact on the economy clouds on the horizon. Already, we have seen a weaken- and deter much-needed inflows of foreign direct invest- ing of the global diamond market during 2019, which ment, the political environment of an election year made is unlikely to be reversed in the second half of the year. any further concessions impossible. The move emphasizes Outside of diamonds, there are many risks in the global (adversely) the distinction between Botswana and Mauri- economy. Amongst the big, negative risks are the prospect tius, where a new Property Development Scheme has been of an escalating trade war between the USA and China; described as “the latest in a series of initiatives geared at potential recession in the US – as indicated by the inverted opening up the economy to foreigners and providing them US treasury yield curve – and growth slowdown in China, with the opportunity of becoming property owners in an both of which would be made more likely by a trade war; enviable and stable country, if they so wish.”1 1 Intercontinental Trust Ltd, July 2019 Newsletter”. page 3 www.econsult.co.bw Annual GDP Growth KEY ECONOMICSectoral VARIABLES GDP Growth 30% Water & Elec. Trans. & Comm. 20% Annual GDP Growth Sectoral GDP Growth AnnualMiningAnnual GDP GDPGrowth Growth Sectoral SectoralGDP Growth GDP Growth 10% 30%30% Trade Water & Elec. Water & Elec. Fin. & Bus. Service 0% Trans. & Comm.Trans. & Comm. 20%20% Total VA Mining Mining -10% 10% 10%Soc. & Pers. Services Trade Trade -20% 0% Construction Fin. & Bus. Service 0% Fin. & Bus. Service Manuf Total VA -30% -10% Total VA -10% Government Soc. & Pers. Services -40% -20% Soc. & Pers. Services Agriculture Construction -20% Manuf Construction -50% -30% 0% 2% 4% 6% 8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -30% Government Manuf -40% All sectors registered positive annual Agriculture Government NMPS Mining GDP -40% -50% growth rates in the first quarter of 2019. Bank credit growth0%Agriculture2% declined4% 6% significantly8% , from 8.1% in objective range of 3-6%. Inflation figures 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Real GDP growth has continued its relatively strong -50%Most sectors (excluding Trade and Water & January 2019 to 6.7% in0% April.2% This 4%was driven6% 8%by a remain low, in part because, it is too early 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018All2019 sectors registered positive annual performance into the first quarter of 2019, recording Electricity) experienced small changes (+/- sharp decline in the growth of credit to firms, which fell for them to reflect any upward pressure on NMPS Mining GDP growth rates in the first quarter of 2019.
Load more

Recommended publications
  • ECONOMIC REVIEW Second Quarter April-June 2021 in This Issue
    www.econsult.co.bw compiled by SETHUNYA KEGAKGAMETSE KITSO MOKHURUTSHE ECONOMIC REVIEW second quarter april-june 2021 in this issue ... UPDATING AND KEY MACRO- REBASING ECONOMIC NEWS ECONOMIC NATIONAL COMMENTARY 1 VARIABLES 4 HIGHLIGHTS 8 DATA 12 ACCOUNTS 13 COMMENTARY Economic Challenges Deepen in Q1 2021: National Accounts Rebased to 2016 Introduction The persistent COVID-19 pandemic continued to intensify the economic challenges faced by Botswana. Annual economic growth contracted further during the first quar- ter of 2021, recording a larger slowdown than that recorded during the global financial crisis in 2008/09. Moreover, the revisions to the national accounts data released in July 2021 show that the economy recorded a larger contraction in 2020 than was originally estimated, due to technical adjustments made to the national accounts. However, eco- nomic recovery is still expected in 2021, attributable to the improvement in the global demand for diamonds and improvements in the rollout of COVID-19 vaccines locally and globally. National accounts rebasing and GDP growth The recently-released national accounts for Botswana showed that real GDP (in con- stant prices) has been rebased from the old 2006 base year to a new 2016 base year, for the period from 2014 to Q1 2021. The rebase was necessary to bring about greater accuracy in the measurement of GDP and economic growth, as Botswana national accounts were last rebased in 2012. This means that national accounts are up to date with the latest economic developments, structural changes and international method- ologies used in the compilation of national accounts. page 1 www.econsult.co.bw COMMENTARY On an annual basis, real GDP growth continued to wors- The rebound of the global diamond market from the en as a result of the impact of COVID-19 pandemic.
    [Show full text]
  • ECONOMIC REVIEW Second Quarter April - June 2020 in This Issue
    www.econsult.co.bw compiled by SETHUNYA SEJOE KITSO MOKHURUTSHE ECONOMIC REVIEW second quarter april - june 2020 in this issue ... SPECIAL KEY MACRO- FEATURE: ECONOMIC NEWS ECONOMIC DISTRICT COMMENTARY 1 VARIABLES 4 HIGHLIGHTS 7 DATA 12 RANKINGS 13 COMMENTARY Economic recovery post COVID-19 Introduction The first half of 2020 has seen the world faced with a major health out- break of the corona virus pandemic. The virus caused massive eco- nomic disruption; and the effects are being felt globally, regionally and domestically. During the first half of the year, most economies went into “lockdowns”, a necessary protection measure to try to reduce the degree of the spread of the COVID-19 virus. As a result, economic ac- tivity worldwide was greatly affected, notably international trade and tourism. The International Monetary Fund (IMF) has also projected a gloomy growth outcome for 2020. The global economy is expected to contract by 4.9% in 2020, much worse than the negative 0.07% growth recorded during the global financial crisis in 2008/09. However, gradu- al recovery is expected in 2021 as most economic activities are antici- pated to have bounced back towards normality. Countries around the world are also developing or have developed policies and strategies essential to encourage economic activity. Botswana has also been preparing a post COVID-19 economic recovery strategy. This strategy is discussed below along with the sectors which have the potential to help the country to bounce back to growth. page 1 www.econsult.co.bw COMMENTARY The Economic Recovery and for international tourism, for its famous Okavango Delta Transformation Plan (ERTP) and the luxurious safaris on the land.
    [Show full text]
  • Annual Report 2013 2013 and Beyond Reaching New Heights
    Annual Report 2013 2013 and beyond Reaching new heights 2008 BSE Board Charter 2006 Developing the capital market 2003 Fully independent entity 1994 New legislation 1989 Launch BOTSWANA STOCK EXCHANGE Annual Report 2013 BOTSWANA STOCK EXCHANGE REACHING NEW HEIGHTS TABLE OF CONTENTS 2013 HIGHLIGHTS 4 COMPANY OVERVIEW 10 BOARD MEMBERS 11 MANAGEMENT TEAM 15 OUR STAFF 20 COMPANY REVIEWS 23 CHAIRPERSON’S STATEMENT 25 CEO’S REVIEW 27 COMPANY STRATEGY 91 CORPORATE GOVERNANCE 98 ANNUAL FINANCIAL STATEMENTS 101 1 BOTSWANA STOCK EXCHANGE Annual Report 2013 BOTSWANA STOCK EXCHANGE REACHING NEW HEIGHTS 4 10 11 15 20 23 25 27 91 98 101 2 BOTSWANA STOCK EXCHANGE Annual Report 2013 BOTSWANA STOCK EXCHANGE REACHING NEW HEIGHTS 3 BOTSWANA STOCK EXCHANGE Annual Report 2013 BOTSWANA STOCK EXCHANGE REACHING NEW HEIGHTS 2013 HIGHLIGHTS DCI appreciated by 20.5 % Record turnover of P2.3 Bn achieved Regular trading sessions in the ATS extended by a total of 1 1hr hour, from 1 hour 45 minutes to 2 hours 45 minutes BettaBeta ETF reached its highest price since listing Number of Accounts opened on the BSE, of CSD increased by 13.5% to P40.60 in October 20,027 accounts • Trading Rules for both Equity and Debt Instruments • Inaugural Senior Secondary Schools’ BSE Finance and in final stages of review Investment Quiz successfully hosted • Shumba Coal listed on the Foreign Venture Board • Two-day workshop on Global Depositary Receipts through private placement (GDRs) conducted • BSE launched 3 bond indices, the GovI, CorpI and the • Workshop on Exchange Traded Funds
    [Show full text]
  • The Evolution of Botswana's Parastatals
    www.econsult.co.bw compiled by KEITH JEFFERIS SETHUNYA SEJOE ECONOMIC REVIEW fourth quarter october - december 2017 in this issue ... COMMENTARY KEY NEWS MACRO- SPECIAL ECONOMIC HIGHLIGHTS ECONOMIC FEATURES 1 VARIABLES 4 7 DATA 10 11 COMMENTARY Diamonds performing well but the impact of the BCL closure is still being felt – and challenges facing the new President Economic Summary As we reach the end of 2017 and move into 2018, the economy presents a mixed picture of good, bad and important gaps in the data. Economic growth slowed over the 12 months to the end of September 2017, to an annual rate of only 1.8%, still weighed down by the impact of the closure of the BCL copper-nickel mine in October 2016. We do expect, however, that the final growth figure for the whole of 2017 will be higher than this, in the range of 2-3%. Inflation has picked up slightly, to 3.2% in December 2017, but this is still low by historical standards and within the expected range. As a result, interest rates have been cut again, to their lowest ever level since the Pula was introduced in 1976. Also on a positive note, government rev- This is mainly due to better than expected enues appear to be coming in ahead of performance of diamond exports and gov- forecast. The final budget data for the ernment revenues. Data for the first half of 2016/17 financial year show a more or less the 2017/18 fiscal year (April – September balanced budget (in fact a small surplus, of 2018) indicates that this trend has contin- 0.6% of GDP), in contrast to earlier expec- ued, with a broadly balanced budget rather tations of a substantial deficit.
    [Show full text]
  • Bse News.Pdf
    OCK T S E X A C N H A B A W S N S G T EE O B ISSUE NO.10 • APRIL – JUNE 2020 P25 (INCLUDING VAT) Sold In Botswana Only BSE NEWS • APR – JUN | 2020 2 FOREWORD ello readers. It is my pleasure to welcome you to the latest edition of the Botswana Stock Exchange H(BSE) publication, the BSE News. At times, consistently exceeding private sector is able to contribute towards expectations can be viewed as a blessing productivity, alleviate pressure off Government, aid in the creation of employment, lead the way in and a curse. We have experienced many technological advancements, contribute towards successes and encountered various an increase in household spending and assist in challenges during the 5-year period of our infrastructure development. strategy that we set for ourselves. However, as with most middle-income countries, the growth of such enterprises has been stifled Despite the occasional drawbacks, one of the by a lack of access to capital. While much of the things that I have always held in high regard, is focus, appropriately, is on enhancing lending to maintaining the standard. Whilst in our 5-Year SMEs, there is growing emphasis on the need to strategy, the time has now arrived to reflect and diversify the range of financing options that are assess the work that has been done and redirect available to SMEs, and consequently the potential the focus onto what needs to be done to achieve role of capital markets in SME financing. Avenues our strategic goals as we endeavor to turn the BSE like the stock exchange have not been fully into a world-class securities exchange.
    [Show full text]
  • Developing Essential Financial Markets in Smaller Economies Stylized Facts and Policy Options
    OCCASIONAL PAPER 265 Developing Essential Financial Markets in Smaller Economies Stylized Facts and Policy Options Hervé Ferhani, Mark Stone, Anna Nordstrom, and Seiichi Shimizu INTERNATIONAL MONETARY FUND Washington DC 2009 ©International Monetary Fund. Not for Redistribution ©2009 International Monetary Fund Production: IMF Multimedia Services Division Typesetting: Julio Prego Figures: Andrew Sylvester Cataloging-in-Publication Data Developing essential financial markets in smaller economies : stylized facts and policy options / Hervé Ferhani ... [et al.] – Washington, D.C. : International Monetary Fund, 2009. p. cm.—(Occasional paper, 0251-6365 ; 265) Includes bibliographical references. ISBN 978-1-58906-775-2 1. Finance — Developing countries. 2. Money market — Developing countries. 3. Foreign exchange market — Developing countries. 4. Government securities — Developing countries. 5. Stock exchanges — Developing countries. I. Ferhani, Hervé. II. International Monetary Fund. III. Occasional paper (International Monetary Fund) ; no. 265 HG195 .D484 2008 Please send orders to: International Monetary Fund, Publication Services 700 19th Street, N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Fax: (202) 623-7201 E-mail: [email protected] Internet: www.imfbookstore.org ©International Monetary Fund. Not for Redistribution Contents Preface vii Executive Summary ix I Introduction 1 II Impediments to Financial Market Development in Smaller Economies 5 Intrinsic Obstacles 5 Structural Obstacles 8 Institutional Obstacles 10 Policy
    [Show full text]
  • Pan Africa Index and Currency Movements Top 5
    1st Febuary, 2013 PAN AFRICA INDEX AND CURRENCY MOVEMENTS Country Index Name Index One Day MTD YTD 1 Year 1 Year FX Rate 1 Day MTD YTD Dollar Return % change Level % Chg % Chg % Chg High Low Current % Chg % Chg % Chg 1 Day MTD YTD Botswana BSE DCI 7,795.73 0.19 0.19 3.80 22,116.00 6,967.58 7.93 0.96 0.96 -1.83 1.15 1.15 1.90 Egypt EGX30 5,606.49 0.00 0.00 2.64 5,969.39 4,031.60 6.72 -0.01 -0.01 -5.23 -0.01 -0.01 -2.73 Ghana GSE Composite 1,281.34 0.84 0.84 6.80 1,283.39 979.73 1.91 -0.10 -0.10 -0.05 0.73 0.73 6.75 Ivory Coast IC COMP 173.27 -0.04 -0.04 4.02 173.34 140.04 483.12 0.44 0.44 3.34 0.39 0.39 7.49 Kenya NSE 20 4,420.79 0.09 0.09 6.96 416,049.00 3,142.74 87.22 -0.14 -0.14 -1.28 -0.04 -0.04 5.59 Malawi MSE AISI 6,026.76 0.05 0.05 0.19 6,089.40 5,436.12 359.88 -0.24 -0.24 -7.00 -0.20 -0.20 -6.82 Mauritius SEMDEX 1,797.22 0.00 0.00 3.76 1,833.49 1,653.98 30.50 -0.16 -0.16 0.16 -0.16 -0.16 3.93 Morocco MADEX 15,490.30 0.00 0.00 0.00 8.24 0.30 0.30 2.78 0.30 0.30 2.78 Namibia LOCAL 279.43 0.00 0.00 2.15 279.55 226.78 8.84 1.31 1.31 -4.14 1.31 1.31 -2.09 Nigeria NIG ALSI 32,411.86 1.87 1.87 15.43 32,411.86 20,025.93 157.28 -0.07 -0.07 -0.72 1.80 1.80 14.60 South Africa JSE ALSI 40,601.09 0.29 0.29 3.44 40,652.96 33,387.04 8.84 1.31 1.31 -4.14 1.61 1.61 -0.84 Swaziland SSX ALSI 286.84 0.00 0.00 0.41 286.84 276.45 8.84 1.31 1.31 -4.14 1.31 1.31 -3.75 Tanzania DSEI Index 1,488.53 0.00 0.00 0.20 1,492.17 1,141.26 1,621.00 -0.19 -0.19 -2.22 -0.19 -0.19 -2.03 Tunisia TUNIS 4,777.62 0.38 0.38 4.32 5,301.37 4,541.79 1.54 -0.27 -0.27 0.77 0.11 0.11 5.12 Uganda USE ALSI 1,355.25 0.44 0.44 12.62 1,378.13 815.15 2,657.00 0.11 0.11 0.78 0.55 0.55 13.50 Zambia LUSE ALSI 3,670.60 0.56 0.56 -1.47 3,996.04 3,480.51 5,410.00 0.18 0.18 -3.77 0.75 0.75 -5.18 Zimbabwe Industrial 181.98 1.47 1.47 19.41 181.98 128.95 1.00 0.00 0.00 0.00 1.47 1.47 19.41 TOP 5 LOCAL CURRENCY GAINERS TOP 5 LOCAL CURRENCY DECLINERS Issuer Name Country 1 Day % Chg Issuer Name Country 1 Day % Chg Cavmont Capital Holdings Zambia Plc Zambia 23.08 Metal Fabricators of Zambia Plc.
    [Show full text]
  • Botswana Stock Exchange Overview
    A N N U A L R E P O R T | 2 0 1 5 R E A C H I N G MILEStoneS 2015 1. The BSE registered a yearly turnover of P3.0 Bn, the highest ever recorded since the inception of the BSE 2. BSE Transition Act commenced 3. Afinitas Limited, a pure startup company, listed in July 4. BTCL IPO approved to commence in January 2016 Our Theme CONTENTS Mission & Vision Statements 2 Our Values 3 2015 Highlights 4 The Botswana Stock Exchange 6 Overview “The theme for this year’s Board Members 8 financial and operational Management Team 10 report “Reaching Greater Company Structure 14 Heights” paints a good Our Staff 16 picture and adds strides Chairperson’s Statement 18 to the momentum CEO’s Review 22 generated in the previous Graphical Review 86 Market Statistics 92 year.” BSE Strategy 102 Corporate Governance 108 Regina Vaka BSE Chairperson Financial Statements 113 001 annual report 2015 Vision MISSION Our vision is to & VISION be the leading Stock Exchange STATEMENTS in Africa. Mission We will do this by: To provide and • Growing the market operate a fair, in terms of number of listings, market transparent and capitalisation and liquidity, efficient stock market and in addition; for all stakeholders • Providing excellent returns for our participants; in order to optimise national economic • Attracting the most foreign portfolio investment; and development. • Improving internal operations (including being self sustaining). 002 REACHING GREATER HEIGHTS Our Values PASSION RESPECT INTEGRITY • Creativity & • Teamwork & • Corporate & Personal Innovation Collaboration
    [Show full text]
  • Botswana Stock Exchange Annual Report 2019
    Botswana Stock Exchange Annual Report 2019 BSE PHYSICAL ADDRESS: Plot 70667 | Fairscape Precinct | 4th Floor Fairgrounds, Gaborone Private Bag 00417 BSE CONTACT DETAILS: Tel: +267 367 4400 | Fax: +267 318 0175 Email: [email protected] Web: www.bse.co.bw 1 Botswana Stock Exchange Annual Report 2019 To be resilient, therefore, is a posture for adaptation and survival. Transformation, re-invention and introspection with a view to seeking new opportunities are a necessity for endurance in this landscape. LIEUTENANT GENERAL TEBOGO CARTER MASIRE CHAIRPERSON OF THE BOARD OF DIRECTORS 2 Botswana Botswana Stock Stock Exchange Exchange Annual Annual Report Report 2019 2019 TABLE CONTENTS 2019 HIGHLIGHTS 4 - 5 MISSION, VISION & VALUE STATEMENTS 6 BOTSWANA STOCK EXCHANGE LIMITED OVERVIEW 7 - 8 OUR BOARD OF DIRECTORS 10 CSDB BOARD OF DIRECTORS 11 CORPORATE GOVERNANCE 12 - 14 OUR MANAGEMENT TEAM 15 - 18 ORGANISATIONAL STRUCTURE 19 OUR STAFF 20 - 21 CHAIRPERSON’S STATEMENT 22 - 24 CEO’s REVIEW 26 - 81 - EQUITY MARKET PERFORMANCE 30 - 42 - THE EXCHANGE TRADED FUND (ETF) MARKET 43 - 48 - BOND MARKET PERFORMANCE 49 - 51 - MARKET INDICATORS 51 - 55 - COMPARISON WITH SELECTED MARKETS 55 - 65 - PRIMARY MARKETS 61 - DEPARTMENTAL REVIEWS 61 - 69 - CEO’S APPRECIATION 69 - 70 - GRAPHICAL REVIEW 71 - 74 - MARKET STATISTICS 75 - 81 GROUP ANNUAL FINANCIAL STATEMENTS 83 - 128 3 Botswana Stock Exchange Annual Report 2019 2019 HIGHLIGHTS BSE celebrated its 30th Anniversary Total securities BSE hosted the turnover of P4.2 billion 23rd Annual African in 2019, compared to
    [Show full text]
  • Pan Africa Index and Currency Movements Top 5
    26th March, 2012 PAN AFRICA INDEX AND CURRENCY MOVEMENTS Country Index Name Index One Day MTD YTD 1 Year 1 Year FX Rate 1 Day MTD YTD Dollar Return % change Level % Chg % Chg % Chg High Low Current % Chg % Chg % Chg 1 Day MTD YTD Botswana BSE DCI 7,038.72 0.01 1.02 0.97 7,412.17 6,877.19 7.22 -0.83 0.83 -3.39 0.85 0.18 4.52 Egypt EGX30 4,908.43 -1.09 -5.94 35.50 5,628.09 3,586.55 6.04 0.08 0.09 0.08 -1.17 -6.03 35.39 Ghana GSE Composite 1,038.67 -0.04 2.18 7.19 1,188.91 890.18 1.78 0.65 4.31 8.32 -0.68 -2.04 -1.05 Ivory Coast IC COMP 152.39 -0.03 3.18 9.73 161.75 134.37 490.99 -1.17 -0.80 -3.50 1.16 4.01 13.71 Kenya NSE 20 3,312.56 -0.01 0.27 3.36 4,098.52 3,070.36 83.20 0.29 0.24 -2.20 -0.30 0.03 5.68 Malawi MSE AISI 5,512.07 0.00 1.37 2.66 5,512.07 4,841.85 166.15 -0.15 -1.10 1.59 0.15 2.51 1.05 Mauritius SEMDEX 1,763.59 0.00 -0.55 -6.61 2,113.61 1,755.88 29.13 0.26 0.60 -0.77 -0.25 -1.15 -5.89 Morocco MADEX 15,490.30 0.00 0.00 0.00 17,047.10 15,224.80 8.37 -0.54 -0.21 -2.57 0.55 0.22 2.63 Namibia LOCAL 234.17 0.01 0.48 5.87 234.17 174.49 7.58 -1.29 1.00 -6.29 1.32 -0.52 12.97 Nigeria NIG ALSI 21,000.14 -0.90 4.36 1.30 25,995.54 19,732.34 157.65 -0.03 0.00 -2.87 -0.87 4.36 4.29 South Africa JSE ALSI 33,664.46 0.28 -1.84 5.25 34,386.97 28,391.18 7.58 -1.29 1.00 -6.29 1.59 -2.82 12.31 Swaziland SSX ALSI 276.45 -0.46 -0.46 2.98 277.72 256.97 7.58 -1.29 1.00 -6.29 0.84 -1.44 9.89 Tanzania DSEI Index 1,324.02 0.00 0.74 1.60 1,324.02 1,181.98 1,594.50 0.22 -0.34 0.79 -0.22 1.09 0.80 Tunisia TUNIS 4,820.31 0.51 1.08 2.08 5,301.37 4,091.36 1.50 -0.37 0.12 0.20 0.88 0.96 1.87 Uganda USE ALSI 977.99 1.08 9.12 17.41 1,243.02 767.11 2,510.00 0.80 5.46 1.21 0.27 3.47 16.01 Zambia LUSE ALSI 3,921.38 0.21 1.18 -1.60 4,189.04 3,628.98 5,325.00 -0.37 1.43 3.90 0.58 -0.24 -5.29 Zimbabwe Industrial 139.12 -0.10 -4.73 -4.62 167.30 137.22 1.00 0.00 0.00 0.00 -0.10 -4.73 -4.62 TOP 5 LOCAL CURRENCY GAINERS TOP 5 LOCAL CURRENCY DECLINERS Issuer Name Country 1 Day % Chg Issuer Name Country 1 Day % Chg Mauritius Leasing Co.
    [Show full text]
  • ECONOMIC REVIEW Fourth Quarter October - December 2016 in This Issue
    www.econsult.co.bw compiled by KEITH JEFFERIS SETHUNYA SEJOE ECONOMIC REVIEW fourth quarter october - december 2016 in this issue ... COMMENTARY KEY NEWS MACRO- SPECIAL 1 ECONOMIC 4 HIGHLIGHTS 7 ECONOMIC 11 FEATURES 12 VARIABLES DATA COMMENTARY Pick up in economic activity but longer-term concerns weigh, as NDP 11 is finalised Economic data released during the fourth quarter of 2016 showed some improvement in macroeco- nomic conditions. Annual GDP growth in Q3 2016 came in at 0.9%, not a high rate but a turnaround from four quarters of negative annual growth. This reflects a recovery in the global diamond market and the falling away of the impact of cutbacks in diamond production a year ago, due to market weakness in 2015. The value of diamonds sold through De Beers Global Sightholder Sales in 2016 was nearly 40% higher than in 2015, leading to an improvement in the balance of payments and government revenues. Inflation picked up slightly to 3%, but is still at the lower end of the Bank of Botswana’s inflation objective range, and interest rates were maintained at historically low levels. For many people and firms, however, economic conditions last Review, the closure will have a major negative impact continue to be tough. Job creation picked up in the year on north-east Botswana if, as seems increasingly likely, no to September, but with only 1% annual growth in formal rescue or buyer is forthcoming. employment, it remains far too low and is well below the rate of population and labour force growth. Business confidence One further potential troubling sign has been the declining rose slightly in the second half of 2016 as compared to of liquidity in the banking system, last seen in 2014 and the first half, but remains low by the standards of recent early 2015.
    [Show full text]
  • ECONOMIC REVIEW Fourth Quarter Oct - Dec 2020 in This Issue
    www.econsult.co.bw compiled by SETHUNYA SEJOE KITSO MOKHURUTSHE ECONOMIC REVIEW fourth quarter oct - dec 2020 in this issue ... SPECIAL FEATURE: KEY MACRO- COVID-19 ECONOMIC NEWS ECONOMIC ECONOMIC COMMENTARY 1 VARIABLES 3 HIGHLIGHTS 6 DATA 10 IMPACT 11 COMMENTARY Short-term recovery, but COVID exposes structural weaknesses and emphasizes the urgency of reforms As 2020 draws to a close, the depth of the impact of the COVID-19 pandemic on the local, regional, and international economies is be- coming clearer. Notwithstanding some recovery from the most se- vere negative economic impact in the second quarter of 2020, it is apparent that the duration of the pandemic will be much longer than originally anticipated, or at least hoped, and as a result some firms and industries will find it even more difficult to survive and recover. Our Feature this quarter goes back to the Special Issue of the Review on COVID produced in March 2020, and examines the economic im- pact nine months later relative to the projections made at that time. In health terms, the impact of COVID-19 in Botswana is still relatively low, as figures on COVID-related death rates in different countries show. However, the pandemic is still spreading, with an upsurge in early 2021, so it would be unwise to be complacent about the comparatively low impact to date. As in other countries, it is increasingly evident that the pandemic will only be contained once a vaccine is widely available and distributed. Although Botswana is a member of the World Health Organisation page 1 www.econsult.co.bw COMMENTARY COVAX initiative, which is intended to provide access to er prices (as cheaper imports are kept out by border clo- vaccines to cover at least 20% of the population, there is sures) and supply disruptions.
    [Show full text]