12th August 2025
Own Correspondent
The listing of Municipal Bonds on the Botswana Stock Exchange(BSE) has been described as a prime example of the creation of agile, efficient, exponential and high-performance Councils.
Ketlhalefile Motshwegwa, Minister of Local Governmment and Traditional affairs, said “this landmark occasion that signals a bold step forward in the evolution of our local governance and developmental financing frameworks. This Memorandum of Understanding (MoU) between the Gaborone City Council and the Botswana Stock Exchange represents more than just a document. It is a declaration of intent, a blueprint for transformation, and a vision of a future where our municipalities are empowered to be catalysts of sustainable economic growth.”
He said, “As the Ministry tasked with overseeing local governance, we have long recognized that in order for our cities and towns to thrive, they must be supported with not only efficient administration but also robust, innovative financial solutions.”
Government officials said the collaboration addresses one of the most critical aspects of urban development – access to capital. It was stressed that we live in a world where the needs of our cities are growing rapidly – from modern infrastructure, sanitation, waste management, housing, and sustainable transport systems to digital and smart city capabilities.
However, traditional financing channels have proven insufficient to meet the full scale of these requirements. The time has come to tap into the vast potential of the capital markets, and this partnership with the Botswana Stock Exchange offers precisely that avenue.
“Through this MoU, we are embracing a future where cities like Gaborone can independently raise funds through municipal bonds to finance transformative infrastructure projects. This aligns seamlessly with our policy prioritieswhich include strengthening local governance, enhancing service delivery, and ensuring that municipalities are both agile and accountable in responding to the needs of their residents,” said Motshwegwa.
He said, “It is also important to highlight that this initiative complements our commitment to urban transformation. Our cities are not merely administrative zones; they are engines of innovation, economic productivity, and cultural development. Enabling them to unlock financing through the capital markets creates new opportunities for inclusive development, job creation, and improved living standards for citizens.”
The Botswana Stock Exchange has demonstrated, through its leadership and consistency, that capital markets in Botswana can be a strategic partner in nation building.
Aobakwe Aupa Monyatsi, CEO of the Botswana Stock Exchange said “We are excited about this partnership with the Gaborone City Council not only because it represents a strategic alignment of interests, but because it sets a precedent for how stock exchanges and councils can collaborate for national impact. Around the world, municipal bonds have been used successfully to build roads, schools, water systems, and even digital infrastructure. There is no reason why the same cannot be achieved in Botswana. In fact, I believe that Botswana is ready for this leap.”
He said, “We are acutely aware that this initiative will require deliberate stakeholder engagement, capacity building, and policy support. It is not a process that can be rushed, but one that must be built on a foundation of trust, transparency, and collaboration. We are prepared to work hand in hand with the Gaborone City Council, the Ministry of Local Government and Traditional Affairs, and the Ministry of Finance to ensure that this project succeeds. Our technical teams stand ready to support the necessary structuring, due diligence, and investor education required to make this a viable and credible offering.”
This initiative comes at a time when we, as a nation, are increasingly seeking alternative and sustainable ways to finance public infrastructure.
It is also consistent with the Fiscal Strategy – on Public Expenditure Efficiency as outlined in Paragraph 148 of the 2025 Budget Speech highlighting ‘’we will work Local Authorities to adopt proactive approaches to maximise and diversify revenue stream.’’
“This is in recognition of the fact that traditional model of relying solely on central government budgets has limitations, especially given the scale of infrastructure needs in our rapidly urbanizing environment. As such, exploring mechanisms like municipal bonds is not only timely but necessary,” said Dr Sayed Timuno, Acting Secretary, Macroeconomic and Financial Policy, Ministry of Finance.
