3 SOE's might go private or gain IPO in the BSE

Good morning, let’s get into it!

President Duma Boko has officially wrapped up the debate on the State of the Nation Address (SONA). While the initial speech set the vision, his "Day 30" response (the President’s reply to the Parliamentary debate) gave us the tactical details we’ve been waiting for as investors.

The message to State-Owned Enterprises (SOEs) was clear: "Profit or Privatize."

This signals a potential wave of new listings on the Botswana Stock Exchange (BSE). Here is the breakdown of the privatization plans addressed and which companies you should be watching.

1. The "Big Fish": Botswana Meat Commission (BMC)

The President and the Ministry of Agriculture have been blunt: despite recent reforms, the BMC is struggling to hit its profitability targets by the end of 2025.

• The Update: The government is actively using the BMC Transition Act to facilitate privatization.

• The BSE Angle: We are likely looking at a "Strategic Equity Partner" model first (where a private company buys a chunk), followed by an IPO for the remaining shares.

• Why it matters: This would end the state monopoly on beef exports in practice, allowing retail investors to finally own a piece of Botswana’s legendary cattle industry.

2. The "Ready-to-Launch": Botswana Savings Bank (BSB)

While BMC is a turnaround play, BSB is looking like a growth play.

• The Update: BSB has just concluded its "Lesedi 2025" strategy, and the President highlighted their massive 230% jump in net profit (hitting ~P76 million).

• The BSE Angle: Management has explicitly stated that they are engaging the government on privatization. Unlike BMC, BSB is profitable now. This makes it a prime candidate for a direct listing (IPO) on the BSE Domestic Board soon.

• Investor Note: If this list, it will likely be oversubscribed. Watch this space closely.

3. The "Infrastructure Giants": BPC & WUC

The President’s response touched on the Botswana Power Corporation (BPC) and Water Utilities Corporation (WUC), but the tone was different.

• The Update: Instead of immediate listing, the focus here is on "Global Partnerships." Boko mentioned securing international investors to modernize the grid and water infrastructure first.

• The BSE Angle: These are likely 2–3 years away from a stock exchange listing. They need to clean up their balance sheets before they can offer shares to the public.

What This Means for You

If the government executes this timeline, we could see the market capitalization of the BSE grow significantly in 2026.

• Liquidity: More listings mean more trading volume.

• Diversification: Currently, the BSE is heavy on banks and property. Adding an agricultural giant (BMC) would be a game-changer for portfolio diversification.

Source:

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