The challenging economic environment hasn’t stifled a number of key successes
Botswana is a landlocked country in Sub-Saharan Africa which since achieving independence in September 1966, has had reliably strong democratic traditions and a growing economy.
Having once been one of the poorest countries, Botswana now has one of the fastest growing per capita incomes in the world having cleverly created an economy that is not solely reliant on the country’s vast quantities of natural resources, and therefore susceptible to falling commodity prices. This stable and diverse economy is now driven by tourism, mining and cattle.
Botswana Stock Exchange
The Botswana Stock Exchange was originally established in 1989 but has only been known as the Botswana Stock Exchange since 1995. It is a thriving yet small stock exchange with only 3 stock indices and about 35 market listings.
The lowest interest rates seen in more than 23 years discouraged investors in 2016, contributing to making it a difficult year for the BSE’s domestic company index (DCI), which saw a depreciation of 11.63%. This is in sharp contrast to 2015 when the stock tracking index saw an appreciation of 11.65%.
Whilst there is no doubt that the economy is under pressure, a number of companies from a range of different sectors have proved to be very resilient, producing encouraging growth in the last 12 months.
The Top Gainers of 2016
Cresta – Up by 19.62%
Cresta Hotels is one of the key beneficiaries of the growing Tourism and Leisure industry in Botswana. They are currently expanding into additional top tourist locations around the country, including Maun.
Botswana Insurance Holding Limited – Up by 15.46%
One of the first companies to be listed on the BSE and also one of 2016’s big winners in what is a very competitive sector. Investors have been encouraged by not only the company’s strong performance but also by its extensive expansion plans.
Engen – Up by 15.15%
A very surprising performance after a difficult start to 2016, when their share price was down by 10%. An encouraging outlook, including a slight increase in oil prices has however helped to produce this astonishing and impressive increase in their share price.
Chobe Holdings – Up by 13.23%
The growth in the tourism sector has benefitted Chobe Holdings hugely, with its luxury lodges and eco-tourism campsites and lodges producing significant profits.
G4S – Up by 12.70%
After a review of their services, including an expansion of its product mix and a focus on its core services, G4S have achieved an impressive share price appreciation.
Barclays Bank Botswana – Up by 12.22%
The banks 5-year transformation strategy continues with the creation of a number of new services and products. Investors are hugely encouraged and their continued backing has helped to make Barclays Bank Botswana the only bank in the banking sector to produce capital gains so far this year.
New African Properties (NAP) – Up by 10.94%
NAP has a number of properties across Botswana, including some prime retail sites. It was first listed on the Botswana Stock Exchange in 2011 and since then it has not only outperformed other property listed stocks, but it also achieved the biggest single day of trade ever seen on the BSE, producing gains of 26% in just 24 hours.
Photos : faganasset.com / african-markets.com / sseinitiative.org /