As one of Africa’s most politically stable and economically successful countries, Botswana provides an excellent place for investors to make their first foray into the continent.
The country was my first Sub-Saharan investment destination, and the experience was so positive that it prompted me to explore other African exchanges.
My broker patiently walked me through the process of buying shares, provided some helpful research, and, perhaps most importantly, instilled a sense of confidence that my transactions would be handled professionally.
Opening a Botswanan Brokerage Account
Here’s what to expect when opening an account and buying your first shares.
I maintain an account with Stockbrokers Botswana and have found them to be responsive to questions from small, retail investors. This article describes the process of opening an account and trading through them.
Motswedi Securities, Capital Securities, and African Alliance also trade on the exchange, and the process of opening an account with them would be much the same. At press time, however, I had not received responses to my account opening queries from any of them.
Step 1: Complete and Return the Trading Account Application Form
The trading account application form requires that you disclose your passport or driver’s license number, your address, and banking details. It’s a pretty straight-forward form that you can complete, scan, and email back to the broker.
Step 2: Complete and Return the CSD Securities Account Opening Form
The Botswana Stock Exchange dematerialized all stock share certificates in 2009 and set up a Central Securities Depository (CSD) that records the ownership of securities in electronic accounts. This dramatically improved trading efficiency. The only drawback is that it added one additional form for new investors to complete. Complete the CSD Securities Account Opening Form and return it to your broker. You will then be assigned a CSD account number. This number will accompany every trade order you place, allowing the CSD to keep record of all your holdings in the country.
Step 3: Provide Two Certified Copies of Your Passport
One copy of your passport will be kept on file by your broker. The other will go to the CSD.
Step 4. Wire Funds to Your Brokerage Account
After opening your trading account, Stockbrokers Botswana will provide you with its bank details so that you can fund your account. The most efficient way to do this is via wire transfer. If you haven’t sent an international wire before, I suggest that you take your broker’s bank details to your local bank branch and ask them to walk you through the process. They’ll make sure that your funds arrive securely. Note that most US banks charge about $25 for outgoing international wires.
Step 5. Submit a Trade Order
You’ve done your research and found a stock among the Botswana Stock Exchange’s 23 domestic listings that you’d like to buy. What now?
If you have opened an account with Stockbrokers Botswana, you need only complete, scan, and email a Trading Mandate Form to their trading department.
Keep in mind that many listings on the Botswana Stock Exchange are nearly as illiquid as the Kalahari itself, so I advise specifying a limit price for all of your orders. This will help you avoid paying significantly more for your shares than you had intended to pay.
Your broker will then execute your trade and send you a contract note that specifies the buy or sell price, commissions, and fees.
Speaking of commissions and fees, here’s how much it will cost you to buy and sell stock on the Botswana Stock Exchange through Stockbrokers Botswana:
| Transaction Value* | Buying | Selling |
|---|---|---|
| BWP1.00 – BWP50,000.00 (≈ US$6,700) | 2.07% + BWP16.80 | 2.07% + BWP11.20 |
| BWP50,001.00 – BWP100,000.00 (≈ US$13,400) | 1.68% + BWP16.80 | 1.68% + BWP11.20 |
| BWP100,001.00 – BWP500,000 (≈ US$67,000) | 1.40% + BWP16.80 | 1.40% + BWP11.20 |
*Trades must be executed in lots of at least 100 shares.
Note that, like Zimbabwe, Botswana levies a 15% withholding tax on dividends. This is deducted by the issuing company before the dividend payment is made.
Investors can request that dividend payments be deposited directly into their trading accounts, thus avoiding the hassle of opening a local bank account.
Mission Accomplished
That’s it! Follow these steps and you’re a Botswana investor.
The process of opening a foreign brokerage account can be confusing. If you found this walk-thru to be clear as mud, please don’t be shy. Post your questions in the comments, and I’ll do my best to get answers for them.
Further Reading
– How to Invest on the Zimbabwean Stock Exchange
– How to Invest on the Nairobi Stock Exchange
my intention is to invest by buying shares and my main problem is how to start and how it works,how much per share?
how much money do I have in account to buy shares because l long wanted to do so please help me and how to invest?
if i have invested in a company,is there any money that i’ll keep on depositing to the company every moth?
Hi Dennis,
No. After you purchase the shares, no further investment is required.
thanks for the response Mr Hoover!!!another question has pop into my mind! now compared to shares how do bonds work?
hi!i have been following the comments and respond and they a very help full but i just wanted to understand something because i have a very concrete desire about investing!!!!!I followed up one of the links above and it directed me to the botswana stock exchange table analysis of shares and my problem is that is not easy for me to interpret the table please help!!!
i would like to thank Ryan Hoover for the job you doing in giving some of us light in stocks.i know something now and i think um ready to start investing . thanks
Thanks so much for the feedback, Pako. I’m glad you found the post helpful. Don’t hesitate to ask if you have questions when you begin to invest!
Hello, I’m a student in tertiary level currently and am interested in buying shares and to invest through it. How do I do that at this stage?
Hi Chika,
In order to buy shares you will need to open a trading account with a stockbroker. You can do that by following the steps in the article above. If anything in the process isn’t clear, don’t hesitate to ask.
But before you buy shares, it’s important to make sure that your finances are in order. Here’s an article that can help make sure you’re ready to go:
https://investinginafrica.net/heres-where-you-start/
Hi,
Wish to learn how much interest is earned in shares? And how to way my risks while investing in shares.
Regards,
Sally
hi, how popular is stock market trading for odinary citezens in botswana and ghana…
My email address is zwai@tlotsitsweholdings.co.za
Hi Reginald,
That’s a good question. It’s a difficult one to answer, but at the end of 2010, there were roughly 10,500 stock trading accounts in Botswana and 48,000 in Ghana.
The barriers to investing in either country are quite low as most brokers don’t require an account opening minimum, so stock trading should only increase in popularity.
Firstly, thanks a lot for this info.
My question is, what do you look at when choosing a company to invest in? Sales, volume, or what?
How do I choose a company to invest in? Which is the most reliable and affordable at start? I am in Lesotho.
Hi Thandy,
When you’re first starting out, look for large companies that are consistently profitable and that have grown their earnings steadily year after year.
Also, make sure you understand how the company makes money. (e.g. What kinds of products or services does it sell? What factors determine its profitability? Does it have any advantages over its competitors?)
Once you have identified several such companies, check their current P/E ratios. The P/E ratio is calculated by dividing the current share price by the company’s most recent earnings per share (EPS). Lower P/E ratios tend to indicate shares that are trading at bargain prices. High P/E ratios may be an indication that the share is over-priced. When you’re first starting out, I would advise you to avoid shares with P/E ratios higher than 25.
You can also ask your broker which shares they would recommend for long-term investors. Good brokers should be able to steer you in the right direction.
I hope this helps, and stay tuned. I plan to post some more articles for beginning investors soon!
All the best,
Ryan
How do i start buyin shares. The requirements and all that?
Hi Dimakatso,
The only real requirement is that you follow the steps in the article above.
After that, you should be good to go and ready to buy shares!
l am in zimbabwe and invest on the ZSE and would like to extend my portfolio to the Botswana Stock Exchange,how can l access the company profile Book,and where can l subscribe trading closing prices.
I have opened an account with a stockbroker. What should I do now? I want to buy shares in one of the listed companies. Please help.
To invest do I need to be carrying a lump sum of cash and can I do it online not necessarily having to go to Gaborone? Assume I have P800, can I invest it? Moreover is there a way of investing kind of paying the money in monthly installments of around P800 monthly for a year. Please help. I want to invest.
Hi Motshidisi,
You don’t need to travel to Botswana to invest. You can open an account online through a broker like Stockbrokers Botswana. I believe they will open an account for you for BWP800. Their minimum trade amount however is 100 shares. So, if you plan to invest with them immediately, you will need to purchase a stock with a share price of less than P8.00 per share.
Adding a set amount (like P800 every month) is a good strategy. The problem is that it might become expensive wiring money to Gaborone. If you know a cheap way to do this, then that’s great. But it wouldn’t be wise to spend $40/month to wire P800 to Botswana each month. You’d be better off saving up $2000 and then wiring it to Bots.
All the best to you!
Ryan
Assuming I have shares in a particular company and want to sell part of my shares to buy stock or get cash, what exactly am i supposed to do?
Hi Kago,
You will need to open a trading account with one of the brokers listed in the article. They will assist you with executing trades and disbursing your cash. If you purchased the shares long ago, you may be required to “de-materialize” the share certificates, because shares are now held electronically. The broker will walk you through the process of doing this.
Happy investing!
Ryan
Hi, I’m a Botswana citizen living in London. Is it possible to buy shares while I’m here?
It certainly is! The brokers listed above can assist you in opening an account and transferring funds.
I’m very much interested in investing in the offshore market. Can you please assist with that?
Hi Thabo,
Do you mean investing outside of Botswana? Any particular countries/markets?
Ryan
if you are still interested in investing offshore give me a call an we can arrange a meeting.
Regards,
Somolekae Modikwa
Hi Somolekae, have you invested offshore? Cause I want to ask you something about it.
I have just developed this interest in buying shares, and I would like some clarification on this issue. Please help.
Do you have a specific question, Tebatso? If so, feel free to ask here, and we’ll do our best to help. Otherwise, I suggest contacting one of the brokers listed above to clarify the investment process.
Hi. Is it possible for me to buy shares without using a stock broker?
Hi Neo,
No. You must open an account with a stockbroker in order to buy and sell shares.
Hi!
How do I invest in international stock such as in Europe, USA and China while in Botswana?
Hi Dennis,
While I can’t speak to Europe and China, most US brokers accept international applicants. I would try Scottrade, ETrade, or TDAmeritrade.
Is it possible to buy shares if you are a tertiary student?
Hi Mpho, There is not an age requirement to invest on the Botswana Stock Exchange. So, if you have a brokerage account, you may buy and sell shares.
Is it possible to buy shares at any time of the year? What is the minimum price of shares that a person can get?
Hi, Mpho. Yes, it is possible to buy shares throughout the year. In theory, the lowest possible value of a share is 1 thebe. Brokers require their clients to purchase in lots not less than 100 shares. Therefore, the lowest minimum purchase is 100 shares x 1 thebe = 1 pula. In practice, however, most shares are priced above 1 pula per share, so the minimum trade value is typically well over P100.
so one does not have to wait for shares to be released in order to buy?
That’s correct, Mpho. Shares trade hands constantly. Unless they are participating in an IPO, investors buy shares from other investors who wish to sell them. Therefore, there are typically always shares available to buy, because there is almost always someone who is willing to sell.
So how many Choppies and or FNB shares can one buy with let’s say 2000 pula?
First, you will need to see the latest price sheet. You can find that at this link: http://www.bse.co.bw/market_n_statistics/daily.pdf. Now, look at the column titled “Last”. This shows the most recent price that all stocks traded at.
As of December 5, the most recent price for Choppies was 203 thebe. Therefore, you can purchase roughly 985 shares of Choppies with P2000. (P2000 / 2.03 = 985.22)
FNB last traded at 279 thebe. So, P2000 can buy you approximately 717 shares. (P2000 / P2.79 = 716.8)
Note, however, that share prices are fluid. They can go up or down from day to day. Be aware, too, that your broker will charge a commission for each trade. So this will slightly reduce the number of shares a P2000 investment can purchase by about 2%.
Where can you get the historical price for Botswana shares? I want to do some analysis before I invest.
Hi Sam,
Bloomberg (www.bloomberg.com) has price charts for Botswanan stocks that stretch back five years. Just type the name of the stock you are analyzing into the search bar, then go to “stock chart,” and hover over the chart to view the price on a particular date.
Ryan
I have already opened an account with one of the local brokers. I’m stuck at trying to find information about the domestic companies. Before I buy shares of say LETSHEGO OR FNBB, where can i get their quarterly results? Something similar to what Yahoo! Finance provides with regards to financial news and company results. Especially, yearly SALES, EPS, EQUITY, CASH, GROWTH RATES, LOG TERM DEBT,P/E etc.
Thank you in advance.
Hey One,
You can find quarterly results for Botswana here. Unfortunately, the data isn’t in an easily digestible format, like it is on Yahoo Finance. I would suggest contacting your broker to see if they publish research that includes the info that you’re looking for.
Good luck!
I have opened an account with a stockbroker, and now I want to know what to do so that I can buy shares in one of the companies listed. Help, please.
Congratulations on opening an account, Mogi! Now, if you know which stock you’d like to buy, the next step is as simple as telling your broker which stock you’d like to buy and how much money you are prepared to invest. Investing does involve risk, so make sure to only invest money that you will not need for several years. If you have any interest-bearing debts to pay, I’d advise paying them off first before investing in the stock market.
Hi, I found a job as a finance manager at a company based in Gaborone. he company has idle funds in the bank account. It gave me the task to find ways of investing these funds on the Botswana Stock Exchange and which securities it can invest in. The current management does not understand how the BSE works nor which companies are listed on the exchange. I want to know the procedures for investing in a listed company.
Hi! I am trying to open an account with Stockbrokers Botswana Ltd. What is the difference between bonds and equities and which one would you recommend to someone who is new in the investment industry?
Hi, I also want to invest at the BSE. The problem is I don’t understand the process.
Where can I learn how to trade stocks if I want to make it a business?
Hi Wayne,
I don’t recommend day-trading (trading stocks frequently during the course of a day) as a livelihood. It’s extremely stressful, and based very much on luck as far as I can tell. If you would like to learn to analyze stocks professionally, I highly recommend the curriculum offered by the CFA Institute http://www.cfainstitute.org.
Hi Ryan
I currently stay in Wales, and I have been thinking of investing some of my pocket change by buying shares in Botswana. The stockbrokers’ website however does not offer much information on how I can get started. Any advice? And do you think a £100 is a good start off amount or should I put more?
Kary
Hi Kary,
I would try emailing Stockbrokers Botswana (www.stockbrokers-botswana.com) and asking them for instructions as to how to open a trading account. The process should be pretty straightforward.
I would, however, count on investing a larger sum. Wire transfer fees, which will be required in order to fund your account, can be costly. They are charged at a flat sum and might even equal 10 pounds per transfer. So, it’s better to save up 1000 pounds or so before you start.
Ryan
Thanks
hello..
Am very much interested in buying shares and I would like to know how much can i use Purchase shares that represent 1% or 0.5% of a company that trade at e.g. P2.70 per share.how much dividends in estimates can I get quartely for shares of P2000 and P5000 respectively?
Hi Albert,
Dividend yields vary from stock to stock. But it’s not unusual to find stocks with 4% yields in Botswana. If you bought P5000 worth of shares in one of these companies, your dividend would be about P200 per year. Dividends in most of Africa are usually paid on an annual or semi-annual basis – not quarterly.
Hope this helps!
Ryan
Hi Ryan,
Is the P200 per year standard or depends on the stock value at the end of a FY? This is not motivating at all for a starter like me. Investing that much money to get a dividend worth a restaurant meal? I’m looking at investing as well and wondering if you have any recommendations of where one can find some terms/language used in the stock market.
Itumeleng
Hi Itumeleng,
The P200 was just an example. It may be higher or lower depending on the stock, its performance, and how large an investment you make. Basically, you can think of dividends as a portion of earnings that a company pays to investors as a sort of reward for investing in the company.
Also, note, that companies tend to raise their dividends at a rate that reflects the growth in a company’s profits. And as a company’s profits increase, its share price tends to increase, too.
Here’s a great introduction to stock investing. (It’s written for US investors, but its main concepts are applicable to Botswana, too.)
http://www.fool.com/how-to-invest/thirteen-steps/index.aspx
You might also find this article helpful.
https://investinginafrica.net/2013/02/what-is-a-stock/
Hope this helps a little bit, and let me know if you have any questions!
Hi Ryan,
Thank you so much for your response and continued commitment in helping novice starters like me. Keep up the good work with your blog, I found a lot of information useful just on this thread.
Thanks a million,
Itumeleng
I’m glad you found it helpful, Itumeleng. Keep me posted on how things work out for you!
I have $5000.00, and I want to buy some shares. I understand I’ve got to open the account with a broker in order to start buying shares. My question is how many shares roughly can I get from them for that precise amount of money?
Hi Thulani,
The short answer to your question is that it depends on the price of the share that you want to buy.
Here’s how you go about figuring out roughly how many shares you can afford.
When you wire your money to your brokerage account, the $5000 will be automatically converted to Pula. Note that any costs of the wire transfer will be deducted from the $5000. Let’s assume for simplicity that the wire costs $50.00.
So, you are left with $4950.00 to convert to pula. The current exchange rate for the pula is approximately P8.80 for $1.00. So, after wiring money you will have about P43,560.00 in your trading account ($4950.00 x 8.8).
Next, you will choose a stock and ask the broker to invest all of the funds available in your account (P43,560.00). When you make a trade the cost of fees and commission will be deducted from your available funds. These costs amount to 2.07% of the transaction value plus P16.80. Deduct this and you are left with P42,660 available for the purchase of shares.
Let’s assume you wish to buy shares of Letshego. Letshego shares are currently selling at a price of P2.30 per share. So to determine how many shares you can buy, you divide P42,660 by P2.30. You will arrive at a figure of 18,548 shares. This is approximately of Letshego you can currently buy with your $5000.00.
Happy investing!
Ryan
If I buy choppies shares at P 3.00 in January 2013 and in December the same year the price has increased to maybe P4.13 I understand I have made profit. Let me say I bought 1000 shares my profit gain is 4.13-3.00=1.13 then I multiply with 1000 shares.1.13*1000=P1130
Am I compelled to sell or should I wait for the price of the share to increase even more and more till next year 2014 with the hope that the prize of the share could increase higher.
You have discovered the art of investing, Merapelo. It’s all about knowing when and what to buy and when and what to sell.
The market will not compel you to sell. You must judge whether you think the price has gone too high or could still go higher. If you think it has gone too high, you may want to sell and reinvest in a better-priced share.
Morning! I would like to buy shares from the Botswana Stock Exchange but I do not know how to get about it.
Hi Thabang,
Have a read through the article, and let me know if you have any specific questions.
All the best,
Ryan
This is an interesting site.
Is there something like an index fund whereby I can invest in the whole exchange at once or a least a good number of companies?
If there a pan-African index fund?
Also, are there index funds that are organized to promote social aims or at least avoid destructive results in Africa?
I would be interested in something socially responsible and diverse, which put dividends right back into the index fund. I am small-scale but thinking long term.
Best of luck.
Thanks, Murfmensch. Good question.
There are an increasing number of funds that allow US investors to gain exposure to African markets. At the moment, none of them are explicitly socially responsible, but some invest less in mining and oil exploration than others.
The following post provides an overview of a number of funds with significant African holdings.
http://www.investinginafrica.net/2012/11/11-african-mutual-funds/
All the best,
Ryan
Hi Ryan, Thank you for the info. I’m new to this and I really want to invest the money left by my mom after she passed away and my mind was on shares. The problem is I don’t really know which company to buy or how much money to use.
Hi Lebo,
Buying stocks can be a little frightening at first because of the level of risk involved. One way to reduce this risk is to avoid putting all of your eggs in one basket. Invest in several companies – not just one. In fact, in Botswana, where commissions are charged on a percentage basis, you can invest in 10 different companies without paying any more in fees than if you had invested in only one. So, diversify your investment, and as your knowledge of the market grows, you can begin investing larger sums in companies that look to be better bargains.
As far as how much to invest, I would suggest only investing that money that you can invest in shares and not touch for five years or more. Stocks are not guaranteed to increase in value, so only invest money that you can afford to lose.
Hope this helps and keep us posted on how things go for you!
Ryan
How do you lose in stocks? How does a fall of share price result in loss and can you lose without selling?
Good question, Moscalm. Your losses (and gains) are only locked in when you sell a share of stock. Before you sell, the value of your shares can rise and fall. These are often referred to as “paper” losses or gains.
This idea of “paper losses” tempts some investors to hold on to shares that have dropped in value in a vain hope that the share price will recover even when the underlying company’s prospects look bleak. This can cause real damage to a portfolio. Sometimes it’s best to sell for a loss and reallocate to stocks with better value.
Interested in buying shares, just curious on what I should look out for and how much would be a good amount to buy decent shares?
Which of these yields better returns, trading in stocks or saving your money in an interest earning account?
Hi Ryan
Thanks for you page – it’s a great way to discover ways to invest in small markets such as Botswana! May I ask you two questions on the subject?
– If I invest in Botswana, I got to change money to Pula. How big is the currency-risk related to US-dollars?
– What about liquidity risk? I have seen that there is not very much trading going on compared to big markets. Will I always find a counterparty that is willing to trade? And if so, is the spread between bid/ask more costly than in “developed” markets?
Thanks for your answer in advance! Greetings Max
how do i register for share in botswana?
Are you able to offer advice on buying, new shares by analysing the current market especially for someone who already has some shares and wishes to buy more
Hi Kgogobi,
I generally hold my favorite stocks pretty close to my vest, but I am contemplating a premium service that would highlight African companies that I believe exhibit exceptional value. Stay tuned!
All the best,
Ryan
where can i find brokers in botswana, and are brokers companies or individuals?
Hi Anon,
Brokers are companies licensed to trade shares on the stock exchange. Here’s a list of licensed brokers in Botswana:
http://www.investinginafrica.net/african-stock-markets/botswana-stock-exchange/stockbrokers/
Ryan
I am interested in invest but first i want to understand the procedures to be followed, what is needed and how much do i need to invest.
hi..Can you help me how do i buy shares from Johnsberg Stock Exchange..can you help me.
m residing in Francistown
Hi Kabo,
Here’s an article that walks you through buying shares on the JSE step by step.
http://www.investinginafrica.net/2013/07/how-to-invest-on-the-johannesburg-stock-exchange/
Let me know if you have questions and happy investing!
Ryan
Hie!
I have just seen this this website now its very educating about investing in shares.
i wanted to ask that is it possible to invest in Europe like London stock exchange while in Africa like in Botswana?
Good question, Duncan.
This blog is mostly about investing in African markets, but here’s an article that might help.
http://www.globalnigerian.com/?p=31
The author is a Nigerian who invests in the USA via Saxo Bank, a Danish brokerage firm.
All the best!
Ryan
Hey Ryan,i am very much interested investing in shares bt i dnt earn much salary so is it possible for me to invest p500 monthly installments for a year and is there any amount i shud pay when openning an account with a stockbroker?
Hi Lorato,
Yes, it is possible to invest P500 per month on the BSE. There is no fee or minimum amount that you must pay in order to open an account with a broker. However, when you decide to purchase shares, you must purchase at least 100 of them. That means if you are only investing P500. You can only buy shares that are trading for P5,00 or less.
If you want to purchase a stock with a price higher than P5,00, you can always save up for another month or two before depositing into your trading account.
Happy investing!
which country is better to invest in between bostwana and zambia?.am a zambian.
Hi Moonga,
If you are Zambian, I would advise that you first invest in Zambia. I say this because you will be more familiar with the companies listed on the exchange, and will, perhaps, have a better sense of what their advantages and opportunities are.
Hope this helps!
Ryan
Hi Ryan,
Thanks for the help. I am very passionate about investing in Botswana. I researched the companies, and I have seen some opportunities. Being in a SADC country like Zambia, do I still have to wire my money or can I just deposit it in their bank account? Thanks
That’s great, Moonga. Unless you already have a bank account in Botswana or are traveling there in person, I believe you will need to wire money in order to fund your brokerage account. Check with the broker first, though, just in case they have another option that I don’t know about.
How productive can shares of as little as P500 be, and is it advisable to venture into this at the age of 20? Thank you.
Thanks for the great questions, Thabo.
Performance varies greatly from share to share. Some may double or even triple or quadruple in value over a few months or years. But remember that they can also decrease in value. They might decrease 20%, 50%, or even 100% over time. So, never forget that there is an element of risk to investing in shares.
With that said, stocks on the Botswana Stock Exchange have, on average, risen about 4% per year over the past five years. Most shares also pay out a small dividend. Let’s assume that you invest P500 in a stock that rises 4% over the following year and, at the time of your share purchase, yields 2%. At the end of that year, the value of your shares would have increased P20 (P500 x 4% = P20) plus you would have received dividends worth P10 (P500 x 2% = P10). So your total return for the year would be P30 (P20 + P10 = P30).
Keep in mind that this is just an example based on recent averages. Let’s assume your shares drop 20% in value. In that case, the value of your shares would be P400 after one year (P500 x -0.2 = -P100).
So, in answer to your second question, age 20 is not too young to begin investing in shares, but make certain that you understand that you are investing in a risky asset that may end up losing money. I always advise people to first save an emergency fund equal to at least six months of living expenses before investing any money in shares. Here’s an article that explains more:
http://www.investinginafrica.net/2013/11/stash-cash-investing-african-stocks/
Hope this helps, Thabo, and I wish you all the best!
Ryan
Thank you Ryan. I appreciate it.
Hi Ryan, I would like to know whether it is better to invest in shares or to invest in bonds and why?
Thank you so much Mr. R. Hoover, it was so informative and now i know it is not as difficult as i had assumed. The only question i would like to ask, is, how much does it cost to open an account with the stockbrokers?
Hi, again, i forgot to ask about paid-up shares, i have heard that Botswana Building Society offers such and i would appreciate if you could share that with us as well.
Thank you.
I learnt everything i needed to knw just by reading the thread of comments and id like to thank you Mr. Ryan…
Hi I want to know that can I invest money at botswana maybe 50.000 for three years and how much it can be maybe after three years .If I’m from south Africa
I am more interested in bonds than shares so what i want to know is if maybe i save P10 000 for 6 years roughly how much interest will i make?
Hi Ryan,
First of all, great article its been very helpful.
Like everybody who wrote here am also interested in investing however, am very impatient. I want to make large profit qucikly. Do u think buying and selling shares is the right path for me ?
Thanks so much, Rithu. I appreciate the feedback and question.
While it is possible to make quick profits investing in shares, it’s highly improbable. The most successful investors buy shares of good companies at a fair price and hold on for the long-term.
hi Ryan
Informative and educating article.Thanks for sharing such rich info wth us.
Can you advise on the best companies to invest on.Are there any fees for application process?
thank you for sharing such a resourceful information with us. I am on my way to the brokers.
You’re very welcome, Bonolo. Let us know how things work out for you!
Hey Ryan im curious about investing and ill like to know more bout it.Can you invest for a short time just to get profit for your investment money
hie!
i am interest in investing in shares but people always discourage me that they are risk and they take time for you to get the reward.They also say i should invest more money like maybe p300 000 for example.should give up or i do more research on them and learn more about them.i sometime ask them at bse how they make money and explain to me that if you buy lets say letshego at 2.30 and it sometime increase to 2.74,you find the difference which is 0.44 then you multiply by number of shares which is 417 which is 183.48.can you clarify more they are calculated.
hie!
i am interest in investing in shares but people always discourage me that they are risk and they take time for you to get the reward.They also say i should invest more money like maybe p300 000 for example.should give up or i do more research on them and learn more about them.i sometime ask them at bse how they make money and explain to me that if you buy lets say letshego at 2.30 and it sometime increase to 2.74,you find the difference which is 0.44 then you multiply by number of shares which is 417 which is 183.48.can you clarify more how they are calculated.
Hello Mr Hoover , wanna start investing , I don’t have passport but I have omang .izt ok to apply for account using it? And tell mi how am I going to benefit , suppose I had P1000. I bought shares on january , december how much money I would have . Jst estimate .
Hi Baganne,
The omang should suffice for opening a brokerage account in Botswana.
Unfortunately, one can not estimate the return you might expect with certainty. In fact, there’s a chance your investment may actually be worth less one year from now than it is worth today. Over the past five years, however, the Botswana Stock Exchange has averaged a 4% annual return. If that was the case over the next year and you invested in a stock that paid out P20.00 in dividends your investment’s value would be worth P1060 at the end of the year. Keep in mind, however, that this is just based on recent averages. Your actual return might end up much lower or much higher.
I would like to know if mutual funds and treasury funds are traded on the BSE?
Hi Ludo,
Three exchange traded funds (ETFs) and a number of government bonds (http://www.bse.co.bw/listed_companies/bonds.php) are listed on the BSE.
Hi Ryan,
Thank you so much for your article, it has really shed some light on something I have long been interested in. My question is;
What if I am interested in buying up shares in a particular company not for the sole purpose of later cashing in when the share price goes up, but just for enjoying dividends. Can I continue to keep on buying up shares in that same company as and when I get more funds, especially if the forecasts show that the company is headed for continuous growth over the next decade or so?
Hey Ryan,
You sure can. You may continue to buy shares for as long as someone else is willing to sell them to you.
Great question!
Hi Ryan, I would like to know the benefits of buying shares
interested in buy share but i dont no the procedure
I want to start off by buying shares worth of BWP1000,00 at the Botswana Stock Exchange ..so i was wondering how much will i earn from those shares?
hi Ryan
I am interest in investing in shares but people always discourage me that they are risk and they take time for you to get the reward. They also say i should invest more money like maybe p300 000 for example. Should give up or i do more research on them and learn more about them. I sometime ask them at bse how they make money and explain to me that if you buy lets say letshego at 2.30 and it sometime increase to 2.74,you find the difference which is 0.44 then you multiply by number of shares which is 417 which is 183.48.can you clarify more how they are calculated.
Hi Nonofo,
It’s true that there are no guarantees in the stock market. It’s quite possible that the value of the shares you buy will drop between the time that you buy them and when you want to sell them. On average, however, stock markets have been the best place to invest money over the long-term.
I wouldn’t say that you need P300,000 before you begin investing. In fact, the only requirement is that you have sufficient funds to pay for 100 shares of stock. But I do strongly advise that you first pay off any high-interest debt and save up an emergency fund in the bank. Here are a couple articles that might be helpful in this regard:
https://investinginafrica.net/tame-debt-before-investing/
https://investinginafrica.net/how-to-build-an-emergency-fund/
Finally, you’re capital gain calculation example is correct. The other component of your investment return is dividends. Many companies, including Letshego, pay out a portion of their earnings to shareholders on an annual or bi-annual basis. Note, this amount can fluctuate or even disappear from year to year. Letshego, paid dividends amounting to 16.5 thebe last year. So, if you bought 417 shares and that dividend remained at the same level this year, you would receive a total of P68.81 worth of dividends to add to your hypothetical capital gain of P183.48.
Good questions and hope this helped!
are you saying one has to buy 100 shares or more?
That’s correct, Paina. You must purchase at least 100 shares of stock.
Hi Ryan, i want to say thank you for the article and your responses to the various Questions. Now i want to ask. What is closed-end mutual fund and is such an investment medium available in Botswana?
types of transactions allowed in the bse?
Hi Nelson,
Investors on the BSE can take long positions on listed stocks. There is also a rather illiquid bond market. No shorting. No derivatives.
HI boss long time i wanted to invest in united kingdom while in africa is it possible for me to invest and howe can i be sure that the security is tight
interesting would love to receive your mail regular basis
Is it possible to do all the above steps online or i have to visit my stock brokers office to do all that.
You can do most of the steps via email, but if you live near the broker’s office, it may be more efficient to simply pay them a visit. That way you don’t need mess with mailing them copies of identity documents and such.