Archive for the 'Swaziland' Category

SADC stock exchanges work together towards links, shared skills and better visibility

The 10 stock exchanges of the Southern African Development Community (SADC) are working together to increase the effectiveness of their markets. The Committee of SADC Stock Exchanges (CoSSE) has agreed to concentrate on 6 priority areas in support of regional moves to more efficient capital markets.
The stock exchanges will explore ways to use technology to link their trading and order systems and work together to ensure clearing and settlement systems align with global standards adopted in April. They are working closely with SADC institutions to support development of regional systems, including payment and will boost visibility of trading data and enhance their joint website (www.cossesadc.org), launched in April by the JSE and I-Net Bridge. The bourses will also pool resources to accelerate training and skills development for capital markets staff.
CoSSE members are Botswana Stock Exchange, Malawi Stock Exchange, Stock Exchange of Mauritius, Bolsa de Valores de Moçambique, Namibian Stock Exchange, South Africa’s JSE Ltd, Swaziland Stock Exchange, Dar es Salaam Stock Exchange of Tanzania, Zambia’s Lusaka Stock Exchange, and the Zimbabwe Stock Exchange. They met on 25 June in Gaborone, Botswana in a meeting convened by CoSSE with support from SADC Secretariat.
“Stock exchanges have their roles cut out in each of our economies to augment our governments’ efforts to grow national economies for the greater good and as part of the SADC region’s struggle for growth to escape poverty,” says Mrs Beatrice Nkanza, Chairperson of CoSSE and CEO of the Lusaka Stock Exchange. “They are the channel for long-term risk capital, which is urgently needed for the region’s businesses, infrastructure providers and even governments. They also encourage saving and investment. CoSSE members are working closely together to support SADC initiatives and to make individual markets even more effective”.
CoSSE was set up in 1997 as a collective body of the stock exchanges in the Southern African Development Community (SADC). It promotes co-operation and collaboration between member stock exchanges and is resourced by a Secretariat, supported by the JSE. SADC defines CoSSE’s role in the Finance and Investment Protocol and other policy documents and CoSSE has links to ministerial and senior treasury bodies and also works closely with the Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) and the Committee of Central Bank Governors (CCBG).
CoSSE had set up three working committees to implement six business plans, prioritized from the initiatives identified in its Strategic Plan 2011-2016. These are:
1. Legal and Secretariat working committee – chaired by Geoff Rothschild of the JSE. This is responsible for formalizing and resourcing the Secretariat, and for continuing and improving liaison with CISNA and other SADC organs.
2. Market Development working committee – chaired by Vipin Mahabirsingh of the Stock Exchange of Mauritius. CoSSE has been developing models for inter-connectivity between automated trading systems at some or all member exchanges. The working committee will help member exchanges ensure their clearing and settlement systems comply with new global standards and support regional initiatives.
3. Capacity-Building and Visibility working committee – chaired by Anabela Chambuca Pinho of the Bolsa de Valores de Moçambique. This will liaise with member exchanges, regulators, stockbrokers, investors and others to develop and coordinate training courses. It will also enhance the new CoSSE website, help members to upgrade their own websites and to ensure their trading data and company news are disseminated internationally.
Progress will be guided by an Executive Committee, consisting of CoSSE Chairperson Mrs Nkanza, CoSSE Vice-Chairperson Gabriel Kitua (CEO of the Dar es Salaam Stock Exchange in Tanzania) and the three working committee chairpersons. The strategic plan was developed with assistance from FinMark Trust.

For more information contact
Beatrice Nkanza, CEO Lusaka Stock Exchange, tel +260 (1) 228391 or email nkanzab [at] luse.co.zm
Gabriel Kitua, CEO Dar es Salaam Stock Exchange, tel +255 22 2135779 or email gabriel.kitua [at] dse.co.tz.
Pearl Moatshe of CoSSE Secretariat, tel +27 11 5207118 or email pearlm [at] jse.co.za

Swaziland issues first 3-year Government debt, raises $34 million

The Central Bank of Swaziland (www.centralbank.org.sz) on 27 August sold the first longer-term Government bonds to raise money for development projects. It plans further sales this year, a central bank official told Bloomberg news agency. Bloomberg quotes Phumzile Mkhatswa, a domestic debt officer at the bank, as saying: “Yesterday was the first time the central bank has released a 3-year bond. We plan to issue 5-year and 10-year bonds before the end of this year.”
The Central Bank sold 250 million elangeni ($34.2 million) worth of three-year bonds with an 8% coupon. Previously the bank had only sold short-term Treasury bills with regular auctions of 28- and 56-day bills. Although interest rates are often lower than in South Africa, which surrounds the kingdom of Swaziland, the Treasury bills are often oversubscribed. Bloomberg reports there were 383.2 million elangeni of Government debt outstanding in June. Yesterday’s bond sale attracted 519 million elangeni in bids, the central bank said.
According to Bloomberg, Mkhatswa said, without providing further details, the bonds are “intended to raise money for the Kingdom of Swaziland’s development projects.”
The Swaziland currency is the lilangeni (plural elangeni), pegged to the South African rand at parity. Current debt listings on the Swaziland Stock Exchange (www.ssx.org.sz) include 2 Government debt securities listed, both expiring in 2010, as well as corporate bonds from Newera Partners, Inyatsi Construction and Standard Bank SD. Only the Standard Bank bond has any duration, and expires in 2019, while maximum duration of the other bonds is 2012.
Equity listings are: Nedbank Swaziland, Royal Swaziland Sugar Corporation, Swazispa Holdings, Swaziland Property Investment and Swaziland Empowerment.