The Botswana Stock Exchange (BSE) is home to a number of dynamic, fast-growing companies with operations that span the African continent.
But how much money do you need to open an account and get started investing there?
Minimum to Invest on BSE
There is no minimum amount required to open an account. You can start with however much you can afford.
However, when you decide to purchase a stock you must purchase at least 100 shares per transaction.
Therefore, the minimum investment amount depends on the current price of whichever stock you intend to buy.
You can find the current price of each stock listed on the BSE here:
Botswana Stock Exchange – Share Prices
Look at the “Offer” column to get an idea of the best share price currently available.
Don’t Forget Commissions and Fees
When you buy or sell a stock you will also be charged 2.12% of the total trade value to cover your broker’s commission and various taxes and fees.
Adding It Up
As I write this, the stock with the lowest price per share is Furnmart with an offer price of P0.75 (roughly $0.07).
Therefore, the minimum amount you can invest at today’s price is P76.59.
P0.75 x 100 shares + 2.12% commission and fees = P76.59
On the other end of the spectrum, you’ll need at least P2706.18 to invest in Sechaba Breweries, which currently trades for P26.50.
P2650.00 x 100 shares + 2.12% commission and fees = P2706.18
A Word of Caution
Keep in mind that a low share price doesn’t necessarily mean a stock is a bargain. Nor does a high share price mean that a stock is overvalued.
A stock’s price must be weighed against a number of factors, including (but not limited to) the underlying company’s earnings, dividends, net assets, and potential for growth.
Where to Start?
Investing in stocks doesn’t offer a guaranteed return.
In fact, it can easily leave you with less money than you started with. And, if you’re new to investing, it can take time to familiarize yourself with different approaches to valuation and financial analysis that can improve your odds of netting a positive investment return.
So, just dip your toe in the water first. Invest only a small amount – an amount that you can easily afford to lose.
And invest first in a company that you know well, preferably one whose products or services you use regularly. Then, as your investment knowledge grows, you can invest more with increased confidence.
Your Turn
Do you have questions about investing on the Botswana Stock Exchange? Let’s hear them in the comments.
Hello my name is Genesis Ozuna, I have a couple questions I am a Student at Georgia Gwinnett College. I have a group presentation on Chobe Holdings Limited. I’m trying to figure out if Chobe Holdings Limited sells stock outside of the country that it’s based in which is Botswana, Africa. I see that it is public and international company, so I am assuming yes I just want to be sure. Thank you!!
Hi Genesis,
As far as I know, the only place to purchase shares of Chobe Holdings is on the Botswana Stock Exchange. Here’s a link to their financial info.
Hope this helps!
What products are currently available to trade in BSE. Can I trade in options and futures as well or only in shares. If yes then are they liquid enough to trade.
Hi Newton. No futures or options trading available on the BSE at present.
Good day I am resident of SA how do I go about to open a account to trade on the Botswana stock exchange?
Hi Henk,
I suggest that you contact Stockbrokers Botswana (https://www.stockbrokersbotswana.co.bw/) about opening an account. There are no restrictions on South Africans investing on the Botswana Stock Exchange.
Here’s an old article I wrote about the process of opening a trading account: https://investinginafrica.net/how-to-invest-in-botswana/
Hope this helps and happy investing!