1. 1 www.jse.co.za Copyright© JSE Limited 2009 www.jse.co.za The African Investment Challenge Siobhan Cleary JSE: Strategy and Public Policy

2. 2 www.jse.co.za Continental overview

3. 3 www.jse.co.za 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

4. 4 www.jse.co.za Exchange market capitalisation Data as at April 2012

5. 5 www.jse.co.za Data as at April 2012 Size and liquidity matter

6. 6 www.jse.co.za Africa in context

7. 7 www.jse.co.za 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

8. 8 www.jse.co.za Challenges of investing in Africa Lack of information Restricted trading times Markets relatively small and illiquid Lack of automation – trading and settlement

9. 9 www.jse.co.za Growing African capital markets Macroeconomic stability Banking sector development Institutional quality Supportive legal/regulatory framework Automation Regulation and supervision Cost issues Financial market education