The Botswana Stock Exchange (BSE) has achieved a significant milestone by graduating 19 companies from its flagship Tshipidi Mentorship Program.
The program, designed to provide practical training to potential issuers, offers a comprehensive and interactive curriculum covering key themes necessary for companies to position themselves for listing on the BSE.
Established in 2019, the Tshipidi Mentorship Program aims to prepare companies to raise capital, improve governance, and leverage increased publicity through the stock market in the short to medium term.
According to BSE board member Lekono Phiri, corporatization is a crucial first step for private entities looking to list, as it transitions them into corporate bodies that must meet the governance and transparency standards expected of publicly listed companies.
“The transformation is crucial for any company looking to scale up and attract investors. The journey towards successful corporatization is challenging, requiring companies to adopt robust corporate governance practices, streamline financial reporting, and ensure compliance with listing requirements. Although these processes may seem daunting, they are essential for building a sustainable business capable of attracting capital and expanding operations,” said Phiri. He emphasized that the skills gained through the program will support these companies in their listing efforts.
The 19 companies represent a diverse array of industries, including financial services, tourism, energy, property, medical services, retail, and agriculture.
This diversity underscores the program’s broad appeal across various sectors of the economy.
The BSE aims to cultivate a vibrant and diverse market that reflects Botswana’s economic dynamism, positioning the local bourse as a regional financial hub that attracts both local and international issuers.
BSE Acting Chief Executive Officer Kopano Bolokwe spoke about the aspirations for local companies to achieve success on par with their counterparts on the Johannesburg Stock Exchange and even the US stock market.
“The vision may seem unattainable until you embark on the journey, as we have. Enrolling in the Tshipidi Mentorship Program is a significant step towards achieving long-held dreams of entering the public market. Fear is the main barrier that delays or destroys vision. It is imperative to have a mindset shift to take full advantage of the opportunities that arise,” said Bolokwe.
Representing one of the mentee companies, Botswana Building Society, Pedzani Tafa highlighted the value of the mentorship, saying that the training offered real-world insights into investment conversations and provided invaluable feedback from fund managers.
This, she said, would help them anticipate and answer potential investor questions during future pitches.
“Do not let fear hinder your vision to grow and realise more value through the listing process. Seize the opportunity for growth, regardless of whether you are a large or small entity. Do not fear relinquishing some control of the company,” said Tafa, adding that the bank plans to begin its listing process in November 2024.
