The Botswana Stock Exchange (BSE) has launched an ambitious plan to grow its capital markets tenfold by 2030, transforming Gaborone into Africa's premier financial gateway. The '10X by 2030' strategy aims to onshore billions in pension money, finance 186 national projects, and turn every Motswana into an investor. BSE Head of Product Development Kopano Bolokwe outlined the plan, which involves tokenising government bonds, listing a US$500 million Dangote Depository Receipt, and plugging into Abu Dhabi's US$1 trillion Tabadul Hub.
The BSE's plan is built on five transformative pillars, including product innovation, which has led to the introduction of new instruments such as Exchange-Traded Funds, Eurobonds, and asset-backed securities. The exchange has moved beyond equities and bonds, and under the 10X strategy, product innovation is a key driver of growth. Every new instrument must meet four tests: channeling capital into the real economy, driving inclusion and socio-economic impact, being commercially self-sustaining, and scalable locally and globally.
The strategy is already showing results, with the total market capitalisation surging 57.9 percent year-to-date, breaching the historic P1.1 trillion mark. The domestic bond market grew 17 percent to a record P46 billion, and three global ETFs issued by Satrix helped triple ETF turnover to over P1.0 billion. Bolokwe argues that creating more market is key to absorbing billions without inflating a bubble.
The BSE is structuring infrastructure funds, project bonds, green bonds, and sustainability-linked vehicles to connect pension funds to 186 sovereign projects valued at around P514 billion. A P20 billion Botswana Infrastructure Fund is being structured with a prominent African development finance institution, and Botswana's inaugural municipal bond framework has been finalised, allowing Gaborone City Council to raise capital directly from the market.
The BSE has secured a first-mover advantage in tokenisation by passing the Non-Bank Financial Institutions Regulatory Authority Virtual Assets Act of 2025, creating a rigorous licensing regime. The exchange has executed strategic agreements and completed a proof of concept with a global stablecoin issuer and is planning to tokenise sovereign debt securities, pending regulatory approval.
The BSE is importing global operational methodologies through its leadership, with Bolokwe, an alumnus of the IFC – Milken Institute Capital Markets Programme at George Washington University, leading the charge. The next 12 to 24 months will see several major developments, including the Dangote Refineries Unsponsored Depository Receipt, Special Purpose Acquisition Companies, and commodity-linked innovation.
The BSE is also focused on bringing the market back to the customer, with a new integrated retail distribution ecosystem allowing investors to execute real-time capital market transactions via everyday digital channels. The exchange offers a 25 percent discount on listing fees for verified Green, Social, Sustainability-Linked, and Sustainable instruments, and has centralised sustainability under a single framework.
Key points
- The Botswana Stock Exchange aims to grow its capital markets tenfold by 2030.
- The '10X by 2030' strategy involves tokenising government bonds and listing a US$500 million Dangote Depository Receipt.
- The BSE is structuring infrastructure funds and project bonds to connect pension funds to 186 sovereign projects.
