Lesotho Times
LNDC Domestic Investment Manager Semethe Raleche

Plans underway for securities exchange

 

LNDC Domestic Investment Manager Semethe Raleche
LNDC Domestic Investment Manager Semethe Raleche

Tsepiso Secker

THE Central Bank of Lesotho (CBL) has “set the ball rolling” for the establishment of a local securities exchange in the 2015/2016 financial year, the Lesotho Times has learnt.

A stock exchange is an organised and regulated financial market where securities such as bonds, notes and shares are bought and sold at prices governed by the forces of demand and supply.

Once the bourse, which would be called Maseru Securities Exchange (MSE), is established, the CBL’s role would be to regulate and supervise its operations without being involved in its day-to-day operations.

According to CBL Director of Financial Markets Bohlale Phakoe, the apex bank had already played its part in creating a platform for the formation of a securities exchange.

“The Central Bank of Lesotho cannot run the securities exchange. We can only draw up and level the playing field, after which it will be up to the private sector,” Mr Phakoe said.

He added that the CBL had created an enabling environment for the securities exchange by setting up the infrastructure and institutional framework as well as through public awareness campaigns.

“As of yet, however, there are no companies ready to be listed as many still have to be registered as public companies, issue a memorandum of understanding and conclude their initial public offering.

“The ball is now in the LNDC’s (Lesotho National Development Corporation) court since they can determine which companies are ready to list through their large business database,” he said.

Mr Phakoe said Moruo Development already had a system in place in which the public can purchase over-the-counter shares while other companies had been invited to list on the bourse.

“Such companies as Vodacom and Metropolitan have been approached and invited to list on the MSE because of their size.”

On its part, the LNDC said its working towards creating an equity fund through which it can fund businesses with potential and expedite their growth.

According to LNDC Domestic Investment Manager, Semethe Raleche, the equity fund, which is expected to be functional by the last quarter of the 2015/2016 financial year, would allow the corporation to finance non-listed companies and stimulate their growth so they can be listed on the MSE.

He said the initiative was also meant to encourage foreign investment in local companies.

“We need to walk the talk. Foreign investors need to see us taking risks and investing in the Lesotho market,” said Mr Raleche.

“One day we will attract pension funds to inject additional capital and grow the LNDC equity fund. Such funds would then be channeled to good quality assets and these would be domestic financial assets as opposed to those available in foreign markets such as South Africa.”

He further noted that through fund pooling, more money would become available for venture capital.

Lesotho Times

Lesotho's widely read newspaper, published every Thursday and distributed throughout the country and in some parts of South Africa.

Contact us today: News: editor@lestimes.co.ls Advertising: marketing@lestimes.co.ls Telephone: +266 2231 5356

Add comment

Lesotho on Instagram

  • Another pic taken in Lesotho at the bottom of MafikaLisiu
    1 hour ago
  • LesothoKatse Dam wall Fly fishing for legends that lurk beneath
    1 hour ago
  • San Bushmen rock paintings in Lesotho mountains Lesotho africa san
    4 hours ago
  • Throwback to exploring the mountains of Lesotho some time ago
    2 hours ago
  • Lesotho valley lesotho flyfishing fishing river liveit free wellbeing troutfishing
    58 mins ago
  • Are you interested inBinary forex option Tradetrading in binary and
    2 hours ago
  • The breathtaking Maletsunyane Falls in Lesotho if you are in
    4 hours ago
  •  Saves time  Reliable Dial 100 to register for
    1 hour ago
  • On the road in the Kingdom of Lesotho Project againstallodds
    4 hours ago
  • Congratulations Lebohang Soere
    3 hours ago

Tweet your Feedback

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular