Background

An FSAP was undertaken in Botswana in 2008; one of the FSAP recommendations was to strengthen the regulation and supervision of NBFIs. The FSAP noted that replacing the outdated securities regulation and further improvements to the market infrastructure was required to further develop the capital markets in Botswana.

Developing capital markets in Botswana requires meeting a set of pre-conditions and setting the stage for expanding the supply of securities. Pre-conditions include replacing the outdated securities regulation and further improvements to the market infrastructure. Several options exist for increasing the supply and tenure of securities, including through the issuance of government bonds, securitization, and planned privatization listings in the Botswana Stock Exchange (BSE).

Project

Goal: The objective of the proposed technical assistance is to enhance the supervision of the capital markets of Botswana by assisting the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) revise the investment and securities regulatory regime and draft amendments to the Collective Investment Undertakings Act.

Purpose: The above stated objectives will be achieved through addressing three main streams of activities:

- Component 1: Assist in the creation of a Regulatory Regime for Capital Markets Participants (CMP)

- Component 2: Assist in the review and amendment of the Regulatory Regime for Self-Regulatory Organizations (SRO)

- Component 3: Assist in the review and amendment of the current Collective Investment Undertakings Act ("CIU Act")

Outputs:

Final Draft of Capital Market Participant Regulations and Rules and guidance documents:

- Final Draft of SRO Regulations and Rules and guidance documents

- Final Draft of CIU Act, Regulations and Rules and guidance documents

During the project the consultants will work with NBFIRA to ensure there is adequate knowledge transferred to be able to facilitate the passing and implementation of the new/revised Regulations and CIU Act, including be positioned to work with areas of the government and industry to explain the new system.

Project LIFE TIME is 12 months, starting in March 2010

Project BUDGET is $191,533

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