Botswana’s Increase In Internet Usage Leads To Increase In Online Trading

Posted by African Examiner African News Thursday, August 28th, 2014

The Botswana ICT 2012 Statistics’ report, released late last year, indicated a significant growth in both mobile and internet subscriptions in Botswana. An increase in the consumer’s access to the internet in recent years is mostly due to the result of a reduction in costs following improvements in international connectivity.

According to Irfan Pardesi, CEO of ACM Gold, South African-based brokerage firm now fully operational in Botswana, we have not only seen a rise in internet users over the past few years, but also in online trading. This is largely due to investors becoming increasingly conscious of wanting full control over where their money is being invested as well as having access to a secure and reliable investment platform.

“In the wake of the global financial crisis in 2010, investors have realised that they need to take more responsibility for their investments. There has been a definite shift away from the reliance on third parties to invest on people’s behalf, to many people taking ownership of their investments in the form of self-investment,” says Pardesi.

Online trading platforms are inexpensive execution platforms with very few barriers to entry – all that is required is online connectivity and minimum capital to trade with, which is significantly attractive to novice investors who are eager to test the market.

Online trading offers diversity for investors by varying risks and exposure on a return basis on assets outside of Southern Africa, allowing investors to gain some protection from volatility in the local market. “Local investors are now able to enjoy investment exposure to big international brands, such as Apple, which has performed very favourably in the past. Previously, shares in international companies were only accessible with the help of international asset managers,” explains Pardesi.

“In order to create an appropriate portfolio of investments, the investor has to take responsibility for educating themselves on the various options available to them. This is the key to successful online investing,” says Pardesi.

“Our African partnerships are important and having a strong partnership agreement that embraces and shares the vision of ACM Gold in Botswana, will assist in making sure that there is always a hands-on approach when educating and servicing our clients.”

“Investors should not go into the market thinking they know everything – markets are volatile! Investors need to apply appropriate risk management techniques – not every investment will bring a 50% return and it isn’t necessary to go for a ‘home run’ every time. Starting off small is less risky, but can bring satisfactory returns,” concludes Pardesi.

ACM Gold offers several online training courses on a weekly basis and have a 24 hour help desk for their customers. Please contact Prateek Juneja, Botswana based ACM Gold partner, for any queries.