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Transcript of 1 Copyright© JSE Limited 2009 The African Investment Challenge Siobhan Cleary JSE: Strategy and...
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www.jse.co.za
Copyright© JSE Limited 2009
www.jse.co.za
The African Investment ChallengeSiobhan ClearyJSE: Strategy and Public Policy
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Continental overview
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What do we mean by “Africa”?
Enormous disparities in:• Size
– $200m to $852 280m
• Trading hours– 1 hour 3 x per week– 8 hours 5 x per week
• Trading systems– Fully electronic vs floor-based
• Products offered– Equities only to full spectrum
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Exchange market capitalisation
65%
12%
4%
4%
4%3%
2% 1%1% 1% 1% 1% 0% 0% 0% JSE (South Africa) NSX (Namibia)
EGX BSE
Casablanca Bourse (Morocco) NSE (Nigeria)
GSE (Ghana) NSE (Kenya)
BVMT (Tunisia) SEM
DSE (Tanzania) BRVM
USE (Uganda) ZSE
LuSE
Data as at April 2012
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JSE (South Africa)
EGX
NSE (Nigeria)
SEM
Casablanca Bourse (Morocco)
ZSE
BRVM
NSE (Kenya)
BVMT (Tunisia)
BSE
GSE (Ghana)
LuSE
NSX (Namibia)
DSE (Tanzania)
USE (Uganda)
0 50 100 150 200 250 300 350 400 450
No of listed companies
JSE (South Africa)
BVMT (Tunisia)
NSE (Nigeria)
Casablanca Bourse
(Morocco)
BRVM
BSE
DSE (Tanzania)
NSX (Namibia)
0% 5% 10% 15% 20% 25% 30% 35% 40%
Market liquidity
Data as at April 2012
Size and liquidity matter
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Africa in context
0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 5000%
50%
100%
150%
200%
250%
# of Listed Companies
Liqui
dity
TMX Group
NYSE Euronext
NASDAQ OMX
LSE Group
Tokyo SE Group
ASX
Shenzhen SE
NSE In-dia
Hong Kong Exch
Shanghai SED-Borse
Singapore Exch
BM&F Bov
JSE
Egypt
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Regional initiatives
BRVM– 8 member countries in West Africa
• Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau, Mali, Niger, Senegal, Togo
– One exchange in Abidjan, Cote d’Ivoire
EAC– 5 member countries
• Burundi, Kenya, Tanzania, Uganda, Rwanda
– Cross listings – mainly Kenyan
CoSSE– 10 members
• Botswana , Malawi, Mauritius, Mozambique, Namibia, Swaziland, South Africa, Tanzania, Zambia, Zimbabwe
– Harmonisation of listings requirements
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Challenges of investing in Africa
• Lack of information• Restricted trading times• Markets relatively small and illiquid • Lack of automation – trading and settlement
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Growing African capital markets
• Macroeconomic stability • Banking sector development• Institutional quality • Supportive legal/regulatory framework• Automation • Regulation and supervision• Cost issues• Financial market education