Capital Markets

The trillion-dollar market capitalisation of the Johannesburg Stock Exchange (JSE) makes the country’s bourse the 19th-largest exchange worldwide. South Africa has one of the highest equity capitalisation-to-GDP ratios globally, a unique phenomenon by international standards. The country’s capital markets have performed exceedingly well in recent years, in contrast to broader macroeconomic turbulence. Economic growth for 2013, for example, was 1.9%, compared to an equity market that grew by 21.4%. Despite the challenging economic outlook, the JSE is expected to continue to perform well. Equity markets should receive a boost through infrastructure improvements and market conditions like private equity exits, and private equity is set to see strong growth as institutions have not reached their full investment potential. On the bonds and financial derivatives side, the array of products is set to expand, with Islamic debt having made its debut.

This chapter contains interviews with Nonkululeko Nyembezi-Heita, Chairman, Johannesburg Stock Exchange; Stephen van Coller, Chief Executive of Corporate and Investment Banking, Barclays Africa; and Elias Masilela, Former CEO, Public Investment Corporation.