In a move aimed at supercharging small businesses, the Botswana Stock Exchange (BSE) is rolling out a new SME Fund to support the growth and sustainability of small and medium-sized enterprises (SMEs).
The announcement came this week during the High-Level Business Engagement Forum, where experts gathered to brainstorm ways to boost Botswana’s economy.
Speaking at the High-Level Forum, where experts convened to explore sustainable economic avenues, BSE Board Chairperson, Neo Mooki, announced that the fund would serve as a springboard for businesses to expand, innovate, and stay afloat.
“We need more SMEs to grow and list, as well as attracting multinational capital to fuel our economic growth. We need which can help us to unlock Botswana’s economic potential as a shining beacon of Africa,” Mooki said. “The BSE might seem distant but the work we are doing is not just about capital markets, but for people, in order to shift their lives from employees and consumers to being investors and consumers. This is what an inclusive economy is all about.”
Mooki further added that the SME fund will be a lifeline for enterprises that struggle to get loans from the financial sector. The BSE is not just a market for shares and bonds but a place for economic transformation with a market capitalization of over P750 billion, 32 listed companies and 120 instruments. Therefore this puts the local bourse in a strong position, showcasing its strong and sound market platform. “We must diversify and do it now. Entrepreneurs should have access to funds because we are a place of economic transformation and raise capital to fund ideas that can develop into big industries. We must be intentional that wealth is not just reserved for the few, it’s something that belongs to all, this is the future we aspire to have,” explained Mooki, emphasizing that BSE should become a premier capital raising hub in Africa.
President Duma Boko also weighed in, emphasizing the urgent need for economic transformation in Botswana. He highlighted the nation’s struggle with youth unemployment and the pressing reality of an unequal economy, stressing that poverty is a violation of human rights.
“Wealth and income inequalities are what we are battling as a country; wrestling with institutions which do not serve any purpose. Poverty is a violation of human rights; if we accept then, we must acknowledge that there are many in our society whose rights are violated. We call to address this plight and predicament. Decent living wage is key because it also makes economic sense and raises the levels of productivity in businesses. There is lack of agility, unresponsiveness in the public service and this can be frustrating for business so we are trying to add some energy,” Boko said, highlighting the importance of investing in infrastructure to attract foreign capital and foster foreign direct investment (FDI), with a specific focus on climate-resilient infrastructure.
The President also pushed for a crackdown on corruption and a shift to digital services to make the economy more efficient.
For his part, Chief of Staff, Dr. Oupa Tsheko, expressed concern over Botswana’s low tax collections. He revealed that from a P270 billion economy, only 13% is being collected in taxes, which is the lowest in the region and in the levels of countries such as Afghanistan. “For us to pay civil service and build roads, we should pay tax but it shows we have a problem. Youth unemployment is rife, businesses should work with government to create job opportunities,” he said.
