Botswana Banks Lead Stock Exchange Gains in 2024

AFRICAN STOCKS AND FINANCEDecember 10, 2024 at 12:24 AM UTC

TLDR

Botswana’s listed commercial banks drive gains on the Botswana Stock Exchange (BSE) this year
Standard Chartered Bank Botswana lead the pack with its share price rising 32.3%
First National Bank Botswana recorded a 16.3% increase in share price, followed by Absa Bank Botswana.

Botswana’s listed commercial banks are driving gains on the Botswana Stock Exchange (BSE) this year, with Standard Chartered Bank Botswana leading the pack.

As of November, Standard Chartered’s share price rose 32.3%, following an 85% jump in 2023. The bank outperformed other listed financial and non-financial stocks this year.

First National Bank Botswana recorded a 16.3% increase in share price, followed by Absa Bank Botswana with an 8.8% rise. Financial sector leader Botswana Insurance Holdings Limited (BIHL) also posted a 10% gain during the same period.

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Key Takeaways

Analysts attribute the robust equity performance to a regulatory shift by the Non-Bank Financial Institutions Regulatory Authority. Legislative changes mandating the repatriation of pension fund assets have boosted liquidity in Botswana’s capital market. Asset managers, competing for limited local investment opportunities, have driven demand for stocks, pushing prices higher. The trend highlights the growing importance of regulatory decisions in shaping Botswana's financial markets. Outside banking, strong performers include Chobe Holdings, up 16.9%, and retail giant Choppies, with an 8.3% increase. Engen Botswana also saw a 7.5% rise.

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