Botswana Development Corporation (BDC) and the Botswana Stock Exchange (BSE) have entered into a strategic partnership aimed at strengthening Botswana’s capital markets, improving investment readiness among enterprises and creating new pathways for mobilising long-term capital into productive sectors of the economy.
The two institutions formalised the partnership through a Memorandum of Understanding (MoU) signed by BDC Managing Director, Mr Oteng Keabetswe, and BSE Chief Executive Officer, Mr Aobakwe Monyatsi. The signing forms part of a broader effort by the institutions to strengthen the connection between enterprise development, investment and Botswana’s capital markets.
The partnership brings together BDC’s investment and enterprise development capabilities with BSE’s capital- market expertise and infrastructure to develop more structured pathways through which businesses can access capital, strengthen institutional capability and, where appropriate, progress towards participation in public capital markets.
Under the MoU, BDC and BSE will collaborate on preparing suitable BDC investee companies for future capital-market participation; SME investment readiness and capacity building; joint market intelligence and research; investor education and engagement; development of innovative financial instruments; ESG readiness; and policy and regulatory engagement supporting capital-market development. This could include progression through Over-the-Counter platforms, SME or venture boards and, where appropriate, eventual listing on the BSE Main Board.
Speaking at the signing, BDC Managing Director Mr Oteng Keabetswe said the partnership reflects the need to consider the full investment lifecycle and create stronger connections between enterprise growth and long-term capital.
“As Botswana’s economy evolves, so too must the way we finance growth. Our role as a development finance institution goes beyond providing capital. We must also help build businesses that are institutionally strong, investment ready and able to access broader pools of capital as they grow. Our partnership with BSE creates an important bridge between enterprise development and capital-market participation.”
“An exchange is only as strong as the pipeline of businesses and investment opportunities that come to market. Through this partnership, we will deliberately build that pipeline by strengthening the capacity and investment readiness of BDC investee companies and SMEs, while exploring an Infrastructure Fund to develop bankable projects and mobilise long-term institutional and private capital. This creates a stronger pathway from enterprise development to capital raising and, ultimately, participation in Botswana’s public markets,” said BSE Chief Executive Officer, Mr Aupa Monyatsi.
Infrastructure financing represents another strategic area of collaboration under the MoU. BDC and BSE will explore the conceptualisation, structuring, establishment and promotion of an Infrastructure Fund aimed at mobilising long-term capital for strategic infrastructure projects in Botswana and, where appropriate, the wider region.
The collaboration will include exploring appropriate fund structures and investment vehicles, developing a pipeline of bankable infrastructure projects, mobilising institutional and private-sector investors and considering capital-market platforms that can broaden investor participation.
The two institutions will further explore the development and promotion of innovative financing instruments aligned with national development priorities and evolving investor requirements. These may include thematic bonds, local-currency structured products tailored for SMEs and sector-specific Exchange-Traded Funds informed by priority investment sectors.
The partnership will also provide a platform for joint investor forums, market roadshows and other engagements designed to showcase investment opportunities, strengthen investor awareness and deepen participation by domestic and international investors.
Implementation of the MoU will be overseen through a joint BDC–BSE Steering Committee, which will establish annual collaboration priorities, coordinate technical work between the institutions and monitor progress and outcomes. The Committee may also establish technical working groups to advance specific initiatives. The partnership is expected to strengthen the wider investment ecosystem by creating closer linkages between enterprise development, investment readiness, capital formation and Botswana’s public capital markets. Through this collaboration, BDC and BSE aim to contribute towards deeper capital markets, stronger enterprises and greater mobilisation of private and institutional capital in support of Botswana’s long-term economic diversification and sustainable growth.
