The Public Investment Corporation has made an equity investment in ZAR X on behalf of the Government Employees Pension Fund (GEPF).
Africa’s largest investment managers, with assets under management in excess of R1.9 trillion, has bought an equity stake in ZAR X for an undisclosed amount.
ZAR X is a newly-licensed stock exchange founded on using technology to remove existing high barriers to entry, reduce costs, and save time while introducing new opportunities for investors and issuers alike.
“ZAR X and the PIC share a common vision of promoting financial inclusion and stimulating developmental investment,” says ZAR X CEO, Etienne Nel.
“Both organisations also emphasise innovation in order to enable broad financial access and inclusion and to introduce long-awaited competition to grow the capital markets.”
South Africa has mature capital markets that serve the domestic economy and the wider continent. The JSE is currently ranked the 19th largest stock exchange in the world by market capitalisation and the largest exchange in the African continent.
“In addition, ZAR X is keenly focused on the reduction of systemic risk in the financial markets. Our partnership therefore encapsulates a shared operational ethos of rigorous governance processes, diligent risk analysis, and the application of intelligent compliance practices.”
“The acquisition by PIC of a shareholding in ZAR X is a vote of confidence in the exchange’s innovative business model and its ability to influence the capital markets efficiently. The joint venture will be to the advantage of the full spectrum of South Africans and will facilitate the development of new industries that will expand the economy while removing the social, cultural, and commercial barriers to investment capital for people and businesses alike.”
ZAR X competes with the JSE, which was formed in 1887 during the first South African gold rush. Following the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The bourse demutualised and listed on its own exchange in 2005.
“Having a partner of this stature and reputation positions ZAR X ideally to make a major impact on the sector.”