Stanbic Bank Botswana, a subsidiary of a South African banking group, Standard Bank says it has no immediate plans to list on the Botswana Stock Exchange (BSE). Answering a question at a press event this week, Stanbic Bank Botswana CEO, Leina Gabaraane said even though the topic forms part of their conversations as the bank, there are no immediate plans to list some of the bank’s shares which should it happen will also allow citizen participation on the bank’s operations. “One of the benefits of listing is to raise funds, and at the moment we are doing well in that aspect,” Gabaraane said, justifying Stanbic’ reason not to list. Gabaraane said the bank is also being supportive of the local economy by playing critical roles through their financing of key components of the economy, such as mining and many others. Stanbic bank has been doing business in Botswana for the past 25 years and recently celebrated that milestone by hosting a lavish dinner at which the Bank of Botswana (BoB) Governor, Moses Pelaelo was the guest speaker. At the event, Pelaelo insinuated that the bank should come to the bourse though he said BoB does not prescribe that the shares of banks operating in Botswana be listed on the domestic stock exchange.
This, he said, is consistent with accepted best practice and governance norms that the board and management of individual firms should be allowed to determine the appropriate capital structure and economic capital management for a bank, subject to meeting the minimum threshold for prudential regulatory capital adequacy requirements. Pelaelo said the non-existence of Stanbic Bank on the domestic bourse could be misinterpreted to mean lack of long-term commitment and willingness to have the Botswana public participate in the ownership of the bank. However, Gabaraane has reiterated the bank’s commitment and says the bank is doing enough to show long term commitment and says they have also listed bond. Stanbic is one of the 10 commercial banks doing business in Botswana and out of that number only three are listed. Stanbic is a wholly owned subsidiary of Standard Bank Group, which is believed to be the largest Pan-African banking group by assets amounting to R1.85 trillion, approximately P1.6 trillion or $154.5 billion. Standard Bank Group is itself listed on the Johannesburg Stock Exchange (JSE) and operates in 20 countries on the Africa continent.