From the boom-and-bust of the Gold Rush to the diversity and dynamism of the post-apartheid economy, the Johannesburg Stock Exchange JSE has always occupied a central place in South African corporate life and stood as a crucial bellwether of the countrys economic performance. When the economy struggles as it has in recent years corporate activity on the JSE palpably slows. In 2023, as the countrys electricity crisis deepened and GDP growth stuttered along at just 0.6, the exchange saw eleven delistings and just two new listings, according to data from Bloomberg.
And yet, despite the challenges of recent years, the mood at the JSEs Sandton headquarters was buoyant even before Mays dramatic election that brought the pro-market Democratic Alliance into a government of national unity with the ANC.
Lets start with the positives. It absolutely feels a lot better than where weve come from, probably from the last five years, but definitely from the last 24-36 months, Valdene Reddy, director of capital markets at the JSE, told African Business before the election.
South Africa is pretty sophisticated in many elements of our capital markets related to things like listings, but its hard to disassociate that from the macro environment, which has been on the back foot probably for the last six years, Reddy says, citing a familiar list of global and local challenges from Covid to the electricity crisis.
That pervasive sense of crisis, Reddy says, triggered long-awaited unity between the government and private sector and a willingness to change the status quo, even before the shock of polling day.
