Botswana’s bond market has experienced a notable surge, driven largely by a sharp increase in corporate bond activity, according to the latest data released by the Botswana Stock Exchange (BSE).
In its Market Performance Report covering the period 1 January to 30 April 2025, the BSE revealed that the total value of traded bonds reached P1.802 billion, marking a 74.3% increase from the P1.034 billion recorded during the same period in 2024.
A standout feature of the report is the performance of corporate bonds, which saw trading volumes grow fivefold compared to last year. “At the close of April 2025, listed bonds grew from 127 in 2024 to 137 in 2025, driven by a significant rise in corporate bond issuances,” the BSE stated.
While corporate bond activity surged, the number of government bonds dipped slightly from 7 to 6, following the maturity of BOTSGB0325 in March 2025. The composition of the 137 listed bonds in 2025 included 6 government bonds, 104 corporate bonds, 26 commercial paper instruments, and one sustainable bond. This compares with 7 government bonds, 88 corporate bonds, 31 commercial papers, and one sustainable bond in 2024.
Despite the slight decline in government bond listings, the Government of Botswana has continued to express strong support for developing the domestic bond market. With a moderate fiscal deficit, the Ministry of Finance is actively using capital markets to fund national development, with a bond issuance strategy guided by monthly auctions, an annual borrowing plan, and a focus on improving market transparency.
The government has also introduced switch auctions and is exploring a primary dealer system to enhance secondary market liquidity and build a reliable yield curve for pricing public and private debt.
Meanwhile, investor sentiment remained cautiously positive in the equities space. The Domestic Company Index (DCI) appreciated by 2.1% in the first four months of 2025, compared to a 2.4% rise in the same period last year. The Domestic Company Total Return Index (DCTRI) rose by 3.6%, slightly below the 4.9% recorded in 2024. The Foreign Company Index (FCI) showed marginal movement, inching up just 0.005%, compared to a significant 17.4% rise in the previous year.
The BSE also provided insights into equity market participation, noting that local companies dominated turnover, contributing 84.1% of total trades. Local individuals followed with 13.7%, while foreign individuals and companies together accounted for just 2.1%, signalling a domestic-led market dynamic.
With both government and corporate entities tapping into the bond market, Botswana’s capital markets appear poised for continued growth and diversification, reinforcing their role as a key engine for economic development.
