Barclays Africa, the regional division of the multinational banking giant, has announced the cross-listing of its Inflation-Linked Bond Index ETF (ILBI) on the Botswana Stock Exchange. The fund, which has its primary listing destination on the Johannesburg Stock Exchange, offers exposure to an index of inflation-linked South African government bonds.

Increasing cross-border initiatives in Southern Africa are driving growth in the ETF market.

Southern African capital markets are becoming increasingly co-integrated due to several cross-border initiatives launched this year. In August, representatives from the national stock exchanges of South Africa, Kenya, and Nigeria announced they were engaging in discussions to secure the correct framework for facilitating future cross-listings of ETFs between the three countries. These types of collaborations aim to enhance liquidity (boosting the international perception of the country’s capital markets), and provide investors with previously off-limit investment opportunities. The recent ETF launch in Botswana is further proof of an expanding suite of investment options, enlarging the breadth and depth of the country’s capital markets.

Reinette van de Merwe, Managing Director for Barclays Bank Botswana, commented: “The listing of the ETF in Botswana is the first listing of a Barclays Africa ETF outside of South Africa.  This joins the two metals ETF products that we have listed on the BSE – New Gold in 2010 and New Platinum last year.”

The fund offers a low cost method of accessing the South African government bond market while also providing for a hedge against inflation. The fund is easily accessible, offering a convenient alternative to traditional non-listed investments.

“This I believe will add on the numerous interventions that we are consistently introducing to our customers in helping them achieve their ambitions in the right way,” added van de Merwe.