EmaSwati Will Be Able To Invest in ETFs and REITs on the Stock Exchange


Exchange Traded Funds (ETFs) are a basket or pool of securities including shares, bonds, and commodities such as gold which a person can buy or sell through though a brokerage firm on a stock exchange market, while REITs will allow Swati investors to earn a share of income produced through real estate ownership without owning any real estate themselves.


By Avite Mbabazi

The Eswatini Stock Exchange (ESE) reveals that under the newly introduced Automated Traded System (ATS), it will be able to list and trade specialized securities such as the Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs).

REITs will allow Swati investors to earn a share of income produced through real estate ownership without owning any real estate themselves.

In the Eswatini Stock Exchange (ESE) September 2022 Month-end Report, the Head of the Eswatini Stock Exchange (ESE) Joyce Dlamini expressed delight over the national exchanges’ novel ability to list and trade new products, particularly the Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) which were impossible to be traded under the manual trading system.

The ESE announced recently that it is migrating its activities to the Automated Trading System (ATS) following approval from the Financial Services Regulatory Authority (FSRA) and the publication of the Dematerialization Notice 269 of 2022.

The ESE has set a deadline for the dematerialization of securities which will enable the public to convert their physical shares and securities into digital form. The deadline is effective from 1 August 2022 till 29 February 2024.

Exchange Traded Funds (ETFs) are a basket or pool of securities including shares, bonds, and commodities such as gold which a person can buy or sell through though a brokerage firm on a stock exchange market, while REITs is a company that owns and typically operates income-producing real estate or related assets.

REIT shares provide a way for individual investors to earn a share of the income produced through commercial real estate ownership, without actually having to go out and buy commercial real estate.

Furthermore, Dlamini said the ATS bodes well for the SADC market integration agenda which seeks to connect all SADC stock exchanges and other financial services providers (FSPs) to enable seamless cross-border trades and settlements.

“The ESE will now be able to tap into the SADC Interconnectivity Hub Project and the continental-wide African Exchanges Linkage Project which seeks to connect all African exchanges”


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