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South Africa remains the top country in the world which to attain financing through the local equity market and has one of the best-regulated stock exchanges, according to the World Economic Forum’s (WEF) Global Competiveness Index 2016/2017 edition.
The latest Index ranks South Africa 1st out of 138 countries for financing through the local equity market. The JSE is also ranked 3rd among these countries in terms of regulation of securities exchanges.
“The JSE’s is proud of the consistent high ranking its regulations have received and that we have helped to create an environment in which companies can use the equity market to raise capital easily and efficiently. The ability to raise capital is crucial to enable companies to expand and therefore for the overall growth of the economy,” says John Burke: Director of Issuer Regulation at the JSE.
WEF also places South Africa in first place with regards to the protection of minority shareholders’ interests’, improving even further from the strong 3rd place ranking the country received last year. South Africa also remains in first place for its strength of auditing and reporting standards. “South Africa has proven time and again that our well-developed and solid institutions are one of our biggest strengths. The credibility they help to create is what assures international investors that they can trade in a secure and transparent environment in the South African financial market. The JSE has worked hard to help build and sustain this environment through our regulations and attention to the protection of investors.”
According the WEF Index South Africa’s overall country competiveness has also improved to 47th out of 138 countries, compared to 49th out of 140 countries last year. Released annually, the Index rates countries according to 12 pillars or sets of criteria. This includes competitiveness in terms of quality of infrastructure and institutions, efficiency, market sophistication as well as capacity for innovation amongst others. Regulation of securities exchanges falls under the eighth pillar for financial market development.
