André de Lange | Director | Sector Head | Cliffe Dekker Hofmeyr Inc (CDH) | mail me |
Logan Hufkie | Director | PSG Capital | mail me |
Recent progress at the Johannesburg Stock Exchange (JSE) has signalled renewed confidence in South Africa’s capital markets. We believe the JSE plays a critical role in growing the economy.
While market conditions have presented challenges, we remain optimistic about the future. We have seen how the JSE has shown resilience through accessible listings. These listings make it an attractive prospect for companies seeking to unlock value.
Key initiatives driving JSE market growth
One deal that stands out is the unbundling and listing of WeBuyCars. It was nominated for Deal of the Year at the Ansarada DealMakers Annual Gala Awards. We believe this deal proves the JSE’s ability to facilitate value creation. It shows that listing remains a viable option, even amidst growing economic complexities.
The strong investor response and post-listing performance reaffirm that businesses can still find the capital they need for expansion.
Over the past few years, the JSE has introduced several initiatives to improve market participation. These initiatives highlight how the JSE’s Segmentation and Simplification Projects reduce regulatory burdens. They also create a better listing environment. By cutting red tape and simplifying requirements, the JSE makes the listing process easier for businesses.
The segmentation initiatives also help smaller companies raise capital and undertake corporate actions. These initiatives maintain investor confidence through proper disclosure and safeguards.
Economic resilience through market growth
By tailoring listing requirements to accommodate different company sizes, the JSE is creating a more inclusive marketplace.
We believe the future of business in South Africa is bright. The “listing dream”, where businesses can access deeper pools of capital, private equity funds can find their exit, and companies can realise their full potential, can still be achieved. I’m excited to see that we’ve reached a turning point. The renewed interest in the JSE is not just a win for the stock exchange but also for the entire country. More listings mean increased investment opportunities for South African investors. This helps them build wealth and contribute to economic growth.
In our view, more businesses should consider listing locally rather than seeking refuge in foreign capital. I firmly believe in the value and potential of ‘SA Inc.’ The WeBuyCars listing and its strong share performance since listing serve as a tangible example of local businesses thriving on South African soil. This renewed momentum also holds the potential to attract foreign investors looking for stable, well-regulated markets.
By reducing red tape and improving accessibility, the JSE is positioning South Africa as an attractive investment destination. This counters the prevailing sentiment around delistings and market exits. It makes it clear that South Africa remains a top choice for investment.
Opportunities and challenges ahead
Looking ahead, we are confident that the JSE’s recent efforts are laying the groundwork for a stronger and more accessible market. By simplifying listing requirements, reducing red tape, and introducing segmentation strategies, the JSE is proving that South African businesses, whether small or established, can still find deep pools of capital at home.
With a streamlined regulatory environment and a well-capitalised market, we believe more companies will turn to the JSE for growth, expansion, and capital raising. This will pave the way for more primary and secondary listings in the near future. It will also help to deepen South Africa’s investment ecosystem and strengthen the economy.
Ultimately, the JSE is not just adapting, it’s redefining its role as a catalyst for economic growth. As more companies rediscover the power of listing locally, we are confident that South Africa’s capital markets are primed for a resurgence.
