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Periodical article |
| Title: | The Botswana Share Market and its Role in Financial and Economic Development |
| Author: | Jefferis, Keith R. |
| Year: | 1995 |
| Periodical: | World Development |
| Volume: | 23 |
| Issue: | 4 |
| Period: | April |
| Pages: | 663-678 |
| Language: | English |
| Geographic term: | Botswana |
| Subjects: | financial market Development and Technology Economics and Trade |
| External link: | https://doi.org/10.1016/0305-750X(94)00145-O |
| Abstract: | Emerging stock markets are increasingly playing an important role in the financial sectors of developing countries. A share market was established in Botswana in 1989, and although small, it has grown rapidly since that time. This paper examines the achievements of the Botswana Share Market (BSM), and finds that it has made a contribution toward the development of Botswana's capital market. Perhaps the greatest impact has been on institutional savers, who have been able to restructure their investment portfolios and achieve a better balance between property and equities. In addition, the BSM has led a substantial net foreign exchange gain through reducing the institutions' incentives to invest offshore. The BSM has also provided a new link between the substantial long-term savings held by those institutions and the long-term financing needs of companies. On the negative side, it is disappointing that the benefits of improved availability of long-term equity finance have not yet spread to the manufacturing sector. There remain doubts about whether the BSM is in fact a suitable vehicle for raising new finance for this sector. One of the major problems of the BSM is its lack of breadth, both in terms of the number of stocks and the range of economic activities covered. Bibliogr., notes, ref., sum. |