Small and medium-sized enterprises (SMEs) are vital to Botswana’s economic development, contributing significantly to job creation, innovation, and diversification. Yet, one of the biggest challenges facing SMEs is access to capital for growth. To address this, the Botswana Stock Exchange (BSE) offers a dedicated platform—the Tshipidi SME Board—designed to help smaller businesses raise funds by listing publicly. Understanding the listing requirements for SMEs is a crucial first step for any company considering this strategic move.
The Tshipidi SME Board was launched in 2019 with the specific aim of creating a more accessible capital market for Botswana’s emerging businesses. Unlike the main board of the BSE, which is geared toward large corporations with high financial thresholds, the SME board is designed with more flexible listing conditions to accommodate the unique needs of growing enterprises.
To list on the Tshipidi Board, a company must be duly incorporated in Botswana or any country that is recognised by the BSE and must operate in accordance with the Companies Act. The business should also demonstrate a minimum operational track record of two years. In some cases, a shorter track record may be accepted if the company shows strong potential for growth and sustainability, particularly in innovative sectors such as fintech, agribusiness, or renewable energy.
Financially, SMEs looking to list are required to have a minimum stated capital of BWP 250,000. They must also have a board of directors with a minimum of four members, including at least two non-executive directors, to ensure sound governance and transparency. Audited financial statements for the past two years are generally expected, though allowances may be made for startups in exceptional cases.
Another important requirement is the appointment of an approved sponsor or advisor—such as a stockbroker, investment bank, or corporate finance firm—who will guide the SME through the listing process. This ensures compliance with regulatory standards and helps build investor confidence. The company must also submit a detailed prospectus that outlines its business model, financial health, and future growth strategy.
Post-listing obligations are equally important. Listed SMEs are expected to maintain regular disclosure practices, including publishing interim and annual financial reports, notifying the market of any material changes in business operations, and adhering to corporate governance guidelines. These requirements ensure transparency and protect investor interests.
The benefits of listing on the Tshipidi SME Board go beyond access to funding. A public listing enhances a company’s visibility and credibility, which can attract new customers, partners, and employees. It also opens the door to secondary fundraising opportunities, such as rights issues or private placements, and gives early investors a chance to exit or realise returns through share sales.
Moreover, listed SMEs often find it easier to secure financing from banks and development institutions, as the listing process enforces discipline and accountability. This can be especially valuable in Botswana, where traditional financing channels for small businesses are often limited or risk-averse.
To support SMEs through this journey, the BSE runs the Tshipidi Mentorship Program. This initiative provides technical assistance, mentorship, and educational resources to help businesses understand listing requirements, improve financial reporting, and prepare for life as a publicly traded entity.
As Botswana continues to prioritise economic diversification and private sector development, initiatives like the Tshipidi Board represent a meaningful step toward building a more inclusive capital market. For SMEs ready to scale and embrace long-term growth, listing on the Botswana Stock Exchange offers both opportunity and credibility.
With the right preparation and guidance, Botswana’s SMEs can move from being high-potential businesses to becoming key drivers of national prosperity—all while tapping into the country’s growing capital markets.
