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The latest World Economic Forum (WEF) Global Competiveness Report ranks South Africa first out of 148 countries for regulation of securities exchanges for the fourth consecutive year. This, together with several other elements of the report, points to the country’s exchange as a sound environment in which to invest.
“We are very pleased with this accolade for South Africa, which indicates that the Johannesburg Stock Exchange (JSE) is a secure and credible environment to raise capital and in which to invest,” says Director of Issuer Regulation John Burke. “Investors, regardless of size, can have a high level of comfort when using the exchange. This ranking is also testament the JSE and Financial Services Board (FSB)’s sound working relationship.” The country’s securities market regulators are the JSE and its regulator, the Financial Services Board.
Other elements of the report which should give investors comfort are South Africa’s first place rankings for strength of auditing and reporting standards; efficacy of corporate boards; and the protection of minority shareholders’ interests. This is the first time that South Africa has achieved a first place ranking for protection of minority shareholders’ interests.
Another key ranking is South Africa’s second place for financing through the local equity market, moving up from third place last year. “South Africa has access to deep pools of capital both from our well-developed local investment community and high participation of foreign investors. This makes the exchange an ideal destination to raise capital for development in the region,” adds Burke.
South Africa’s financial market development ranking remains impressive at third place.
Overall, South Africa ranked number 53 in the survey out of 148 economies from number 52 last year (when 144 countries were assessed).
Released annually in September, the report 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.
To view or download the full report, please visit http://www.weforum.org
