DOCSLIB.ORG

ECONOMIC REVIEW Third Quarter July - September 2017 in This Issue

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
ECONOMIC REVIEW Third Quarter July - September 2017 in This Issue www.econsult.co.bw compiled by KEITH JEFFERIS SETHUNYA SEJOE ECONOMIC REVIEW third quarter july - september 2017 in this issue ... COMMENTARY KEY NEWS MACRO- SPECIAL ECONOMIC HIGHLIGHTS ECONOMIC FEATURES 1 VARIABLES 3 6 DATA 11 12 COMMENTARY Some positive developments, but offset by concerns about exports and budget deficits Introduction As usual there was a mixed bag of economic developments and data releases in the third quarter of 2017, with some positive developments balanced by persistent or emerging concerns. A fall in inflation and lower unemployment were encouraging, as were higher credit growth and re- duced arrears on bank lending. A sharp decline in exports, however, could be indicative of deeper problems, as are projections of substantial budget deficits ahead. Economic Growth and Diamond had been largely cleared and production Production could be increased modestly in line with Annual GDP growth fell to 3.1% in Q2, improved market conditions. However, the down from 3.9% in the previous quarter, global diamond market is still quite volatile, but this was pretty much in line with ex- and sales have faded somewhat in Q3. pectations, and growth should pick up later in the year. Part of the decline is due to Inflation and Banking the continued impact of the BCL closure Inflation dropped to 3.2% in Q3, a wel- in October 2016, which will work its way come development, reflecting lower South out of the GDP growth numbers by Q4. African inflation as well as a lack of domes- However, this has been partially offset by tic inflationary pressures. We believe that a welcome pick up in diamond production. this low rate of inflation will be sustained, Debswana’s production had been held and it could even fall below the lower end back for some time following the diamond of the Bank of Botswana’s 3-6 percent in- market weakness in 2015, leading to some flation objective range. Subsequently, the production cuts as well as stockpiling of BoB cut the Bank Rate by 50 basis points diamonds. Better sales in 2016 and early to 5.0%. 2017, however, meant that this stockpile page 1 www.econsult.co.bw In the banking sector, the concerns about tight liquidity of it was due to lower export volumes. This is extremely that we raised in the previous review turned out to have worrying, given the fundamental role of export-led growth been driven by incorrect data on banking sector liquidity to the Botswana economy. It will be important to observe published by the BoB. Once the data had been corrected, this closely and see if the trend continues, or if data adjust- liquidity was revealed to be much healthier than previously ments cause it to disappear. thought, so the immediate concerns have receded. Further- more, bank credit growth has picked up from previous very Government Budget low levels, especially bank lending to the private sector. The Ministry of Finance and Economic Development (MFED) This is an encouraging sign regarding business conditions, released the 2017/18 Budget Strategy Paper in September. especially when taken together with evidence of declining This showed the budget outcome for the most recent com- levels of arrears on bank lending to both businesses and pleted fiscal year (2016/17) as well as the revised budget households. for 2017/18 and projected budget for the coming financial year, 2018/19. Unemployment New data from Statistics Botswana show that unemploy- The good news is that the 2016/17 budget outcome was ment in 2015/16 was 17.6%, lower than the previous better than had been anticipated, with a relatively small figure of 19.8% in 2013, and certainly lower than most budget deficit of P535 million, or only 0.3% of GDP – in people expected. We discuss this in more detail in the Fea- other words, very close to a balanced budget. The posi- ture on page 12. Our assessment is the reported rate is tive outcome was mainly due to higher than expected min- probably correct, although driven more by people leaving eral revenues (given the recovery in the diamond market the labour force than a rapid rate of job creation. in 2016), as well as dividend payments from the Bank of Government BudgetBotswana, which together offset disappointing collections Foreign trade of VAT and non-mineral income tax. Tracking of developments with regard to foreign trade and The Ministry of Finance and Economic Development (MFED) released the Nevertheless, the budget position is expected to deteriorate Unemploymentthe balance of payments is has been hindered by problems 2017/18 Budget Strategy Paper in September. This showed the budget outcome with the reporting of data on imports. Since BURS intro- for the most recent completed fiscal year (2016/17)sharply in the current and forthcoming financial as well as the revised years, with duced a new Customs Management System in January big deficits expected due to higher spending. The deficits New data from Statistics Botswana show that unemployment in 2015/16 was budget for 2017/18 and projected budget for the coming financial year, 2018/19. this year, Statistics Botswana has been unable to accu- will need to be financed by a drawdown of government 17.6%, lower than the previous figure of 19.8% in 2013, and certainly lower than The good news is that the 2016/17 budget outcome was better than had been savings (currently around P30 billion) and/or an increase in most people expected. rately capture dataWe discuss this in more detail from BURS, and as in the Fea a resultture on page the pubXX-. anticipated, with a relatively small budget deficit of P535 million, or only 0.3% of Our assessment is the reported rate is probably correct, althoulished data are significantly under-recording gh driven more by imports. We GDP government– in other words, very close to a balanced budget. The positive o borrowing. While there is no immediate probutcome was - people leaving the labour force than a rapid rate of job creaForeign trade tion. understand that this issue is being addressed and should mainly due to lem in financinghigher than expected mineral revenues (given the recovery in th the projected deficits, which are manage- e be resolved before our next review. diamond market in 2016), as well as dividend payments from the able for a year or two, they are not sustainable in the longerBank of Tracking of developments with regard to foreign trade and the balance of Botswanaterm, as, which tog they wouldether offset disappoint collections of VAT and non quickly deplete the financial buffers -mineral payments is has been hindered by problems with Reportedly, data on exports have notthe reporting of data on been affected in the income taxthat government. has built up over several decades in order imports. Since BURS introduced a new Customs Management System in January this year, same Statiway.stics Botswana has been unable to accurately capture data from Nevertheless, the published data show that Nevertheless, the budget position is expected to deteriorate sharply in the to cope with fluctuations in revenues and adjustment away BURS, and as a result the published data are significantly underexports in the first half of 2017 were down by-recording a quarter current and forthcoming financial yearfrom mineral-led growth. Hence,s, with big deficits expected due to ministries will be under higher imports. compared, We understand that t to the first his issue is being addressed and should be half of 2016. The decline occurred spending. severe pressureThe deficits wil to cutl need to be financed by a drawdown of government back some of their spending propos- resolved before our next review. across almost all categories of exports. In part, this was savings (currently around P30 billion) and/or an increase in goals in order to bring overall expenditure back in linevernment with Reportedlydue to exchange, data on exports have not been affected in the same way. rate changes – the pula strengthened by borrowing. While there is no immediate problem in financing therevenues which are expected to decline in the medium term projected Nevertheless, the published data show that exports in the first half of 2017 were around 6% against the US dollar over the period – but most deficits, (as a shareand are manageable for a year or two, they are not of GDP). sustainable in the down by a quarter compared to the first half of 2016. The decline occurred longer term, as they would quickly deplete the financial buffers that government across almost all categories of exports. In part this was due to exchange rate changes – the pula strengthened by around 6% against the US dollar over the has built up over several decades in order to cope with fluctuations in revenues period – but most of it was due to lower export volumes. This is extremely and adjustment away from mineral-led growth. Hence ministries will be under severe pressure to cut back some of their spending proposals in order to bring worrying, given the fundamental role of exportFigure 1: Change in Exports, -H1led growth to the Bo 2016 – H1 2017tswana Figure 2: Government Budget, 2016/17 – 2018/19 economy. It will be important to observe this closely and see if the trend overall expenditure back in line with revenues, which are expected to decline in Figure 1: Change in Exports, H1 2016 – H1 2017 continues, or if data adjustments cause it to disappear. the medium term (as a share of GDP). Figure 2: Government Budget, 2016/17 – 2018/19 80 20% 70 0% 60 -20% 50 -40% 40 30 -60% P billion 20 -80% 10 -100% 0 -10 2016/2017 2017/2018 2018/2019 Revenue Spending Budget balance Source: Source:Calculations based on Calculations based on Botswana Botswana International Merchandise Trade StatisticsInternational Merchandise Trade Statistics Source: MFED Budget Strategy Paper, 2018/19 Source: MFED Budget Strategy Paper, 2018/19 page 2 www.econsult.co.bw KEY ECONOMIC VARIABLES Annual GDP Growth Sectoral GDP Growth 30% Annual GDP Growth Sectoral GDP Growth Annual GDP Growth WaterSectoral & Elec.
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]
  • 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.
    [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]